CFO Magazine Global Business Outlook Survey

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CFO Magazine Global Business Outlook Survey

CFO Magazine Global Business Outlook survey is an example of the significant role our magazines play today in business news. Many companies rely on published industry specific data and current reports for their influence on making upcoming business decisions. CFO Magazine Global Business Outlook Survey just released quarterly results for 887 U.S. firms. The survey results are positive, showing that U.S. advertising and marketing spending is up by 1.1 percent in September 2012 from September results a year ago. Minneapolis based Integral Media Marketing Consultants work with advertising agencies or directly with brand managers, company owners, or direct marketers, to rise above their in-house marketing efforts.

The Magazine Serves Businesses With The Ability To Forecast Results

According to a recent study conducted by CFO Research in collaboration with American Express, CFO's around the world are planning to invest their dollars in the race to reach consumers in emerging markets. The strategy is summed up by a new emerging term called “value discipline” — that is, “directing resources where they are most likely to yield returns”. The fifth annual Global Business and Spending Monitor included a survey of 541 senior finance executives at leading global companies drawn from a wide spectrum of industries in the United States, Canada, Latin America, Europe, and Asia. Marketers carry enormous weight as they determine how to allocate marketing priorities and funds to the determined value disciplines.

Inside individual companies, one clear concern runs across the board - and that is the ability to maintain margins – more than three-quarters of finance executives (76%) cited it as a “top three” issue. Working capital management and the ability to forecast results were worries for many. And about one third (34%) said that it was difficult to maintain morale and productivity among employees in this environment. A slightly smaller proportion (28%) noted that it was difficult to attract and retain qualified employees, suggesting that high and rising unemployment in Europe hasn’t eradicated the skills shortage.

Business Expectations Are Up And Looking For Improvement

CFO's expect financial results over the coming 12 months to improve, according to the survey. The average survey participant said they are looking for a 7.3% increase in revenue and a 6.4% increase in earnings. "Targeting your marketing message to your most likely buyers will make the best use of allocated advertising dollars. Value disciplines and a markets knowledge to maximize media channels work to help businesses maintain profit margins," according to Eric Sims.

Duke's Fuqua School of Business / CFO Magazine Business Outlook For Advertising And Marketing Spending

Additional Finding In The CFO Magazine Survey Were:

1) A 6.7% increase in dividends is expected to be paid.

Cash balances are forecast to rise by about 6%.

Wages and salary growth, however, will be almost flat (0.8%), while capital spending will pancake (0.2%).

The number of domestic, full-time employees at respondents’ companies is projected to fall by 2.7%, while offshore outsourced employee counts are expected to rise by 6.1%.

Increased Perceived Judiciary Risk

One of the most surprising results to the CFO Magazine survey was the perceived risk of Judiciary decisions and their effect on businesses. The types of decisions that courts make, the court processes by which decisions are made and the length of time it takes for the court systems to make decisions. "When we asked if the judicial system provides any kind of risk to your business, 30 percent of U.S. CFO's said, 'Yes, there is judicial risk'. That was a bit higher than we expected, to be honest," said John Graham.

US Monetary Policy Seems To Have Little Effect On Business Spending

U.S. Federal Reserve monetary policy seems to have less effect that thought. When CFO Magazine asked companies, "If the Fed was successful and could reduce interest rates or the borrowing by one percent on the rates you borrow, would you spend more?" 91 percent said "no", that they wouldn't increase their business spending. It doesn't look like Fed monetary policy will have much effect in the short run in the United States. Too many businesses that are reasonably successful right now have saved up case and will not be leaning on it as much.

Engage Integral Media, professional marketing consultants, to help determining how to drive your media buys and direct response advertising to gain the highest yield returns for your advertising and marketing spending. Contact us at 952-470-5254.