Cutting spend now will cost your brand
As ad spend trends up internationally, Australian advertisers need to be mindful of how they’re fairing in comparison. Our experience is that despite a down market currently, there is huge potential for advertising spend to hold or grow and this is backed up by research conducted by WARC and discussed in this article by the UK Advertising Association.
Key points:
- Q1 and Q2 2019 saw growth in international advertising spend despite political uncertainty
- While Q3 was flat, Q4 is expected to climb with an overall 2019 forecast of +5 per cent
- Though we’re living in uncertain times at an international level, marketers aren’t backing down on ad spend
- The ad market in Australia may be experiencing its own struggles, but this is an opportunity for smart marketers to increase their brand’s share of voice
A ‘wait and see’ approach may cost you in the long run. Smart advertisers are continuing to invest in advertising despite the down market we’re experiencing locally. What makes them smart? Because they understand real growth happens for brands when they step away from the pack.
In the UK, despite sustained political uncertainty over Brexit, it appears advertisers there also buy into that argument.
And while there is always pressure on budgets when markets are soft, Gartner research shows that marketers are confident that budgets will rebound in 2020.
So my advice is that advertisers should hold their nerve through rough terrain and be smarter with their media investment, rather than reducing it, as media advertising is crucial to long term brand building. Any cuts in spend and pricing now will lead to harder times in the future where it may be difficult, if not impossible, to claw back the position their brands now hold.
