借鉴模板MagazineAdvertisinginarecession.pptVIP

* Magazine Advertising in a Recession A summary of commercial behaviour in an economic downturn and brand and media recommendations for 2009 Why do advertisers cut back? Because its easy and its quick Lower than expected sales lead to lower profitability Reduced capacity means less volume to trade Competitors reduce spend so Share of Voice is maintained with less Direct costs of unit production increase Marketing spend is unspent, uncommitted and vulnerable Market Dynamics at q1 2008 House prices and share portfolios continue decade of increases Easy credit and joint incomes have created a marketplace of discretional spending - dining out, premium food ranges, fashion upgrades, multiple short breaks, technology, telephony Relatively inexpensive household essentials have been and over supplied. Multiple ownership of brown and white goods, cars, and holidays Market Conditions at q1 2009 Discretional spending cut back Renewal of essentials delayed Employment decreasing Value of assets reduced Market Conditions at q1 2009 Need for brands to remain strong and front of mind to secure revenue from smaller pool [Price Waterhouse Coopers] We believe cutting back marketing spend is not the answer 79% believe marketing is no longer dispensable. It is key part of the business plan Marketing is seen as more of a solution to help than a budget line to cut Strategy first: We set our advertising strategy to take advantage of opportunities in the downturn, then try to come up with a budget to achieve the strategy Budget first: We reduce our budget, then come up with a strategy to do the most we can with that budget Don’t know 61% 27% 12% [Advertising on the Edge. Economist Intelligence Unit Survey] The importance of not cutting back Because there are proven negative impacts on brand position and profitability if marketing expenditure is reduced during a downturn [Barwise,IPA,PIMS,Data2Decisions] It’s a short-term