31 May 2009
Advertisers who spend on marketing communications programmes are reaping better rewards, according to a global survey that included advertising agencies from the region, including Dubai.
The survey was carried out by Icom a leading global network of independent advertising and marketing communications agencies in more than 50 countries.
Budget cuts and new challenges are serving as catalysts for new marketing communications approaches as clients are becoming more open to new ideas and experimentation, the survey found.
Asked to select which of three statements most closely represents their experience, more than half of the 40 survey respondents chose: "Budget cuts and new challenges have served as catalysts for clients to come up with new ideas and experimentation to market their products". Eight other agencies selected: "Clients have not found it necessary to change their marketing tactics" and seven chose: "Clients believe that innovation at this time may be too costly and is risky".
In response to another question, six agencies said clients' budgets were down on an average by more than 49 per cent; 15 said between 21 per cent and 49 per cent; and 14 reported under 20 per cent. Founded in 1950 as the National Federation of Advertising Agencies, Icom includes more than 70 advertising and marketing communications agencies. Today, the network has billings of $2.4 billion (Dh8.8bn) and gross income exceeding $390 million.
Icom agencies in every geographic region - Asia/Pacific, Emea, Latin America and North America - reported more openness to a variety of new approaches for clients within the past six months.
Chris Lovell, Group CEO of London-based Golley Slater, a privately-owned, independent marketing solutions group, said: "Clients are listening more to ideas that we have been trying to get them to think about for months. They aren't so much about innovation as about harder-working ideas, such as new media/digital and driving sales through lead generation techniques."
Mahesh Sundaresan, CEO of Ikon Advertising and Icom member in Dubai said: "The need of the hour is to be a solution provider to clients rather than just be an advertising agency and that's exactly what we are doing with our clients. The challenge is to stay engaged with the consumer through innovative channels that are cost effective."
Ikon Advertising is handling campaigns for local, regional and international brands. In the middle of the current recession, Ikon executed a car launch campaign for Mazda in the region incurring expenditure that was in contrast to industry trends.
In another part of the survey, many responding to the questionnaire said that clients are following a pattern typical during times of economic crisis of investing more in promotion, but they are also much more receptive to new media as well as events and programmes that drive high quality engagement with customers.
For example, Estonian real estate and construction firm - Koger & Partnerid - has shifted the focus of its campaign, handled by Angels Advertising, to drive sales of properties now discounted. "Before we had more image advertising," said Maria Raudsepp, Koger & Partnerid's Marketing and Retail Manager. "Now a special website has been created to list available properties and those recently sold."
Juan A Arteaga, Director of Account Planning and New Business at Arteaga & Arteaga Advertising in Puerto Rico, said: "There has been a definite shift towards below-the-line, word-of-mouth and other direct efforts that generate immediate measurable results."
Advertisers who spend on marketing communications programmes are reaping better rewards, according to a global survey that included advertising agencies from the region, including Dubai.
The survey was carried out by Icom a leading global network of independent advertising and marketing communications agencies in more than 50 countries.
Budget cuts and new challenges are serving as catalysts for new marketing communications approaches as clients are becoming more open to new ideas and experimentation, the survey found.
Asked to select which of three statements most closely represents their experience, more than half of the 40 survey respondents chose: "Budget cuts and new challenges have served as catalysts for clients to come up with new ideas and experimentation to market their products". Eight other agencies selected: "Clients have not found it necessary to change their marketing tactics" and seven chose: "Clients believe that innovation at this time may be too costly and is risky".
In response to another question, six agencies said clients' budgets were down on an average by more than 49 per cent; 15 said between 21 per cent and 49 per cent; and 14 reported under 20 per cent. Founded in 1950 as the National Federation of Advertising Agencies, Icom includes more than 70 advertising and marketing communications agencies. Today, the network has billings of $2.4 billion (Dh8.8bn) and gross income exceeding $390 million.
Icom agencies in every geographic region - Asia/Pacific, Emea, Latin America and North America - reported more openness to a variety of new approaches for clients within the past six months.
Chris Lovell, Group CEO of London-based Golley Slater, a privately-owned, independent marketing solutions group, said: "Clients are listening more to ideas that we have been trying to get them to think about for months. They aren't so much about innovation as about harder-working ideas, such as new media/digital and driving sales through lead generation techniques."
Mahesh Sundaresan, CEO of Ikon Advertising and Icom member in Dubai said: "The need of the hour is to be a solution provider to clients rather than just be an advertising agency and that's exactly what we are doing with our clients. The challenge is to stay engaged with the consumer through innovative channels that are cost effective."
Ikon Advertising is handling campaigns for local, regional and international brands. In the middle of the current recession, Ikon executed a car launch campaign for Mazda in the region incurring expenditure that was in contrast to industry trends.
In another part of the survey, many responding to the questionnaire said that clients are following a pattern typical during times of economic crisis of investing more in promotion, but they are also much more receptive to new media as well as events and programmes that drive high quality engagement with customers.
For example, Estonian real estate and construction firm - Koger & Partnerid - has shifted the focus of its campaign, handled by Angels Advertising, to drive sales of properties now discounted. "Before we had more image advertising," said Maria Raudsepp, Koger & Partnerid's Marketing and Retail Manager. "Now a special website has been created to list available properties and those recently sold."
Juan A Arteaga, Director of Account Planning and New Business at Arteaga & Arteaga Advertising in Puerto Rico, said: "There has been a definite shift towards below-the-line, word-of-mouth and other direct efforts that generate immediate measurable results."
By Vigyan Arya
© Emirates Business 24/7 2009
