Reaction across the industry to the latest IPA Bellwether report.
Matt White, VP EMEA at Quantcast:
“While the economy is unsettled, unemployment remains low and consumers are still working and spending. This is partly due to the robustness of people’s funds, with a record £4.6bn being withdrawn from UK savings accounts in May as people use the money they had set aside to keep spending.
“In difficult times, advertisers have two options: they can either spend or cut back and retain budgets. Those who retain tend to plan a big splash when economic issues subside. The issue with holding back is that you lose brand visibility which can negatively affect customer loyalty. The IPA’s figures show the majority of brands have continued investing to ensure they remain front of mind for when consumer spending increases once again, rather than scrambling to push out creative when difficulties subside.
“The second half of the year will be better. Inflation aside, much of the worst is now behind us and we are beginning to settle into a new normality. For advertising, the Rugby World Cup and inevitable Christmas peak will be strong drivers for growth, which will see marketing spend increase even further as the creative juices flow at the most competitive time of year for brands.”
“It’s positive to see brand marketing is evolving to be more considered, strategic, and value-based. The focus on outcomes and delivering ROI continues to be essential as brands look to drive economic sustainability across their business. Given the overall outlook noted in the Bellwether Report, the importance of driving media quality and delivering responsible media investment continues to be paramount; brands should ensure their ads land in suitable environments that resonate with their audiences. Likewise, using attention – both to measure impact and optimise campaigns toward business outcomes – will help brands see value from ad spend moving forward.”
DoubleVerify’s SVP & Managing Director, EMEA, Nick Reid
“It’s positive to see brand marketing is evolving to be more considered, strategic, and value-based. The focus on outcomes and delivering ROI continues to be essential as brands look to drive economic sustainability across their business.
Given the overall outlook noted in the Bellwether Report, the importance of driving media quality and delivering responsible media investment continues to be paramount; brands should ensure their ads land in suitable environments that resonate with their audiences. Likewise, using attention – both to measure impact and optimise campaigns toward business outcomes – will help brands see value from ad spend moving forward.”
Paul Kelly, Director at Analytic Partners:
Brands are showing up where their customers are with an increase in face-to-face events, direct marketing and sales promotions. In this cost-of-living crisis the message is ‘we’re here for you’. But dig deeper and some sectors are piling into sales promotions through necessity rather than apparent altruism – retailers in particular have been hit by low consumer demand and the need to sell overstock. As the performance payday promise of the Golden Quarter approaches over the horizon, such short-term thinking might be good for short-term impact – and help meet current sales targets – but it needs to be balanced with longer-term brand investment. Building up brands now allows for a more successful promotional period and a better-sustained sales impact beyond it. Furthermore, our ROI Genome shows that 80% of the time brand messaging outperforms performance messaging and can win over customers and their loyalty in a tumultuous era of high inflation, job insecurity, and economic volatility.
Spend on main media is down, but it’s unsurprising with so many emerging channels to explore, rich with valuable data, and primed for innovation. There is a treasure trove of first-party data available from retail media, which is very valuable in a cookie-less future. For the golden quarter, investment in retail media could hold significant potential to drive customer conversion by targeting and retargeting potential customers. By thinking about the lower funnel and looking to reach those who are already showing an interest in making a purchase, brands can achieve better conversion rates. Additionally, our ROI Genome shows that retail media has omnichannel effects beyond the retailer in question, further boosting its performance and highlighting the critical need to measure holistically to prove the true value of the investment.
