MIDDLE EAST
08 INSIGHT
21 December 2008
MARKETING
Following the smart money
AS WITH pretty much everything else in the Middle seems a fair bet that marketing budgets in the region
East communications industry, the question of how will shrink, but what about the money that remains?
ad dollars will be spent in the face of a slumping Will it be distributed among the same media? Will it be
economy isn’t as simple as it might first appear. It directed at the same outlets? And so the question…
“The global economic slump is causing marketers to
distribute their ad dollars more judiciously; but what,
exactly, constitutes ‘judicious’ ad spend?”
Juliet Jarvis Kevin Rapose
Steve Anastasiadis Yves-Michel Gabay
Middle East marketing and PR Regional managing director,
CEO, International business
manager, Lamborghini Initiative
Saatchi & Saatchi development director,
Mediaedge:cia
ON THE whole, Lamborghini’s policy THIS QUESTION leads me to think, by JU-DIC-IOUS – “HAVING, exercising, A JUDICIOUS investment for me is all
is to avoid corporate advertising since insinuation, that marketers weren’t or characterised by good or about its accountability, which means
our brand is subversive and exclusive. being judicious before. For a start, I discriminating judgment; wise, the capacity to monitor results.
However, we still need to consider don’t agree, at least with respect to my sensible, or well-advised: a judicious I believe that greater use of
the need to communicate with our agency, but it is a fact that purse strings selection of documents.” monitoring will go in line with an
markets as they grow in the future. have to be slightly tighter. In times like I find it useful to remind myself increase in sales. This can be done in
This is achieved most effectively by these there is an opportunity. of the meaning of judicious as, like many ways to ensure each and every
focusing and communicating on the A lot of FMCGs will see this many, in times of downturn I do find dollar is well invested and gains the
particular issues that are of pivotal opportunity clearer because the clutter myself assuming that judicious is to best return.
importance to our target audience, and has fallen and it is going to fall further. ‘cut costs’, ‘save’ or ‘limit’. Advertisers need to become better
this is what we consider judicious use It is a fact of life that to live, people will So, rephrased, the question is: informed, and should use the media
of advertising and promotion. We tend what is the wise action to take in a that provide the best figures. For
to emphasise the fact that residuals crisis when it comes to ad spending? example, online is perfect because
remain strong with Lamborghini, that A lot of FMCGs will None of us can make a confident you can monitor everything: cost
our cars’ performance lead their class
see this opportunity
prediction as to what the future per click, cost per impression, cost
and that our cars win awards around holds. Every analyst’s crystal ball has per lead.
the world.
clearer because the
been thrown out of the window. So I Ultimately, we need to look
These are messages that work
clutter has fallen
would suggest we look at the lessons at engagement: that is, how an
better through PR, CRM strategies of the past to guide us in making investment engages best with the
straight to our target market, including
and it is going to fall
‘judicious’ decisions with regards to consumer. We have to break through
direct marketing and event- and
further.
spend strategies. the clutter in order to do things
experience-based marketing. We also While a recession may at first better and engage the consumer
make use of brand ambassadors— continue to eat, bathe, have babies appear to be a disaster, upon closer with our client’s brand. We must ask
those who influence luxury purchasing and live their lives, and there are many examination of past instances, ourselves: did I do that well or not?
trends and provide comment on the clients who fall into that cycle, who will evidence shows there can be We must implement monitoring or
performance car market. continue to fight for market share. the opposite outcome. With the surveys in order to better understand
We find our clients—and Most of our clients are FMCGs and right approach, brands and sales what consumers are doing.
therefore our audience—to be highly we always had to be judicious in our can actually improve during a
aspirational. As such, they find their spend. Our budgets would vary but recession, and set companies up for
way to the Lamborghini marquee and we still had to be careful. Real estate, future growth.
I believe that greater
products mainly through other means meanwhile, was really going to town The following facts come from data use of monitoring
than above-the-line advertising. As during the boom time but now these and real case studies that we and our
will go in line with an
a result, we make great use of PR companies have gone to the other media partners have collated from
and other below-the-line, highly extreme—they’ve gone away. past recessions:
increase in sales.
targeted communications. So it’s not about judiciousness; - Recession is the optimal time to
Lamborghini is an extremely most prudent advertisers wanted you build market share I think our clients understand the
exclusive car manufacturer, even by to be judicious all along. All the while, - Increased advertising will build benefits of this pretty well, but it’s
the standards set by other prestige real estate was taking every media market share also pretty new for many clients in
and performance car manufacturers. available; it was all about being bigger - Recession may be a good time to this region to use these tools; they
We are certainly not immune to the and better for them, and that wasn’t at launch products have to understand they must invest
financial crisis worldwide, but at the all judicious. - Consumers are less loyal during in research.
same time we are in a good position There are going to be cuts but that a recession and more open to We have found that advertisers
with relatively small volumes, a very doesn’t mean you have to change your messages from new or alternative who invest during a crisis are the
strong model derivative strategy and a approach. Sanity has returned. But offerings winners. What’s more, they will also
good forward order book. it hasn’t gone from boom to bust like These are interesting facts that retain their position after the crisis.
everyone is talking about, even if there may help marketers make judicious At the end of the day, they are risking
is a slowdown. Life has to go on. decisions when it comes to the things for their brand so they have to
advertising commitment behind their monitor, be judicious and make the
products and services. right advertising investments.
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