Britain’s ad industry has been given a shot in the arm by new
research showing that companies which maintain or increase their
adspends during recession get off to a flying start when recovery
Clients who resist the temptation to make advertising the first target
of boardroom cutbacks will grow almost three times as fast as rivals
that slash promotional budgets, the survey claims.
Industry lobbyists plan to use the results to hammer home the message to
chief executives and finance directors that advertising is an
indispensable business investment in bad times as well as good.
Andrew Brown, the Advertising Association’s director general, said: ’The
onus is on us to take this message, supported by further research, to
those at the highest level of advertiser companies.’
The survey, by the research company, Profit Impact of Marketing
Strategy, covered 183 UK companies that had experienced similar
recessionary market conditions.
It revealed that companies which boosted their adspends found their
profitability averaged 14 per cent, significantly more than companies
which either cut or maintained spends. Once recovery started, profits
grew more quickly.
Speaking at an AA conference last week, Marilyn Baxter, the
vice-chairman of Saatchi & Saatchi , said: ’This new data gives
ammunition to marketing directors to help them resist the cost-cutting
instincts of their finance colleagues and should also give finance
directors pause for thought.’
Baxter, who also chairs the value of advertising committee at the
Institute of Practitioners in Advertising, cited the ’Nicole and Papa’
campaign for the Renault Clio and the ’We share the same taste in
coffee’ advertising for Nescafe Gold Blend as examples of clients who
had succeeded by increasing their adspends during recession.