Bellwether Report shows that 73% of companies report marketing budget increases or stability despite downturn
The Bellwether Report contains detailed analysis of the UK’s marketing economy, based on a survey of 250 companies, representing all key business sectors. According to the most recent report, produced on behalf of the IPA (Institute of Practitioners in Advertising) and published on the IPA’s website the figures show that advertising budgets are being cut at the fastest rate since the terrorist attacks of 9/11. This sounds like a disaster for the advertising industry.
However, according to Campaign India, the report illustrates this situation by saying that 15% of companies reported an increase in total marketing budgets, whilst 27% reported a decrease. So what does that really mean? Translated into real numbers it says that 67 companies reported that their marketing budgets had been cut, whilst 37 had increased their advertising budgets. We can only assume that the remaining 106 didn’t change their budgets. Put another way, 27% of companies cut their budgets and 73% didn’t.
Let’s ask the old question – is the glass half full or half empty? UK reporting of figures such as those published from the Bellwether Report is definitely in the “half empty” category with an apparent desire to drain the half that is still in the glass!
Taking the figures with a positive frame of mind, it actually seems like the glass is almost three quarters full.
Which ever way you look at it, the glass certainly isn’t 100% full so what action should the UK’s advertising industry take? The IPA President, and Chairman Europe M&C Saatchi, Moray MacLennan, said in April 2008 that “It is a good moment to remind advertisers that those who maintain the strongest marketing spend will come out on top.” In an exclusive interview with WARC in February he advised that in times of a downturn, advertisers and agencies who would turn out to be the winners were those who chose to maintain their budget levels partnered with compelling creative content. And in July the word was for agencies to strive for more original and innovative solutions.
In short, think positive and try harder. We couldn’t agree more and this is a message that we have been pushing for a long time as in our campaign, “Give ’em Oomph not bumf”. The amount of money that is spent on unopened direct marketing is incredible. Direct mail pieces will remain unopened and be deposited in the bin just as long as one item looks exactly the same as another and can be identified even from the look of the envelope as being just another peice of tripe like the 3 or 4 that came yesterday and the day before that and the day before that and so on. Advertisers should search for a piece that cannot be left unopened and cannot easily be ignored.
Do yourselves a big favour – take a look at our innovative marketing products and get hold of our sample pack. We absolutely guarantee that it will deliver a big impact that you can neither ignore or forget.
Just as you would expect from a company whose glass is always more than half full!
