This article first appeared in GULF NEWS, 17 November 2015.
The recent news reports have not been pretty for those in advertising or media: marketers are demanding unprecedented transparency from their agencies and consumers are trying to turn off advertising.
It is time for change, but what does change look like?
Budgets are being slashed. For example, P&G, the world’s biggest advertiser, last month announced its quest to reduce expenditure on advertising by $200 million (Dh734.63). “We are strengthening marketing — greater reach, higher frequency, greater effectiveness, at less overall cost,” the CFO Jon Moeller announced. Savings would be used, he continued, “to invest in working media and sampling”.
Agencies are finding that even digital spends are not forthcoming. For example, the Publicis Groupe announced poor Q3 results, with CEO Maurice Levy declaring, “September showed zero growth due to numerous campaigns being postponed, mainly in digital operations. The level of cuts are surprisingly high and coming from many different advertisers from packaged goods, automotive and pharma.”
Marketers are all putting their media buying up for pitch. WPP, the world’s biggest agency group, Continue reading “2015 in review: change is coming in all directions”