The powers that be have yet to create the official ruling about whether were in a recession, but that hasnt stopped businesses from factoring a recession to their plans for the coming months. Earlier this week, we viewed the way the sell side is approaching a possible recession. This week, its the buy sides turn.
Digiday+ Research surveyed 85 professionals from the buy side in this instance, agencies and brands to discover whether theyre expecting a recession in the coming months and, moreover, what theyre likely to do about any of it.
To begin with, Digidays survey discovered that buy-side pros are expecting a recession to occur within the next six to 12 months: 56% of agencies and brands said they agree somewhat or strongly that people will undoubtedly be in a recession within the next half a year, and 67% said exactly the same of another year. Meanwhile, only 18% of respondents said they disagree somewhat or strongly a recession will occur within the next half a year, and only 15% said they disagree you will have a recession within the next year.
Regardless of the apparent agreement among buy-side pros a recession is coming, agencies and brands either dont know very well what the results of a recession will be for them, or theyre waiting to create any guesses some way.
When asked whether theyre worried because of their jobs or their companies in case of a recession, not just one answer choice garnered even 30% of respondents. When combining those that said they disagree somewhat or strongly that theyre concerned about their jobs, just over half (51%) of respondents said theyre not worried. And 45% said they disagree somewhat or strongly that theyre concerned about their companies.
On the other hand, only 28% said they agree somewhat or strongly that theyre concerned about their jobs if we enter a recession, and slightly greater than a third (34%) said they agree somewhat or strongly that theyre concerned about their companies. Overall, Digidays survey discovered that agency and brand pros dont have strong feelings some way about whether a recession may cause them to worry.
The buy sides wait-and-see method of a possible (or probable) recession became more clear when agency and brand pros told Digiday what their companies did to get ready mostly as the hottest answer was that agencies and brands havent done anything to get ready for a recession. Forty-five percent of respondents said their company hasnt made any preparations linked to a recession.
Meanwhile, another most-popular answer followed fairly far behind, with 35% of agency and brand pros saying their companies have cut travel and entertainment spending. Instituting hiring freezes or slowdowns was the 3rd most-popular answer among respondents, 29% of whom said their companies did this.