CHICAGO (Reuters) - FedEx Corp (FDX.N) has cut its marketing budgets by more than 25 percent in 2009 as part of its response to the bleak U.S. economy, the package delivery giant said on Wednesday.
Mike Glenn, FedEx executive vice president for market development, first disclosed the cuts in a December 29 company blog. (here)
“At this point, more than 25 percent of the overall marketing budgets have been reduced,” Glenn wrote, referring to the company’s 2009 fiscal year that ends in May. “We have reduced our television advertising to its lowest levels in over three years.”
FedEx’s advertising and promotion expenses in fiscal 2008 totaled $445 million, up from $406 million the previous year, according to the company’s 2008 annual report.
FedEx gets a return on investment of $4 to every $1 spent on sports marketing on average, Glenn said in his blog.
The company previously said that for the first time in 12 years it would not advertise during this year’s U.S. Super Bowl championship football game — where a 30-second spot costs about $3 million.
The Memphis, Tennessee-based company, considered a bellwether of U.S. economic health, also said on December 18 that it had a hiring freeze in place and had cut staff levels at its FedEx Freight and FedEx Office units. FedEx and rival United Parcel Service Inc (UPS.N) have seen package volumes hit by the slowing U.S. economy.
Reporting by Ben Klayman, editing by Leslie Gevirtz