PPT借鉴模板MagazineAdvertisinginaRecession.ppt
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1、Magazine Advertising in a Recession,A summary of commercial behaviour in an economic downturn and brand and media recommendations for 2009,Why do advertisers cut back?,Because its easy and its quick,Lower than expected sales lead to lower profitability Reduced capacity means less volume to trade Com
2、petitors reduce spend so Share of Voice is maintained with less Direct costs of unit production increase,Marketing spend is unspent, uncommitted and vulnerable,Market Dynamics at q1 2008,House prices and share portfolios continue decade of increases Easy credit and joint incomes have created a marke
3、tplace of discretional spending - dining out, premium food ranges, fashion upgrades, multiple short breaks, technology, telephony,Relatively inexpensive household essentials have been and over supplied. Multiple ownership of brown and white goods, cars, and holidays,Market Conditions at q1 2009,Disc
4、retional spending cut back Renewal of essentials delayed Employment decreasing Value of assets reduced,Market Conditions at q1 2009,Need for brands to remain strong and front of mind to secure revenue from smaller pool,Price Waterhouse Coopers,We believe cutting back marketing spend is not the answe
5、r,79% believe marketing is no longer dispensable. It is key part of the business plan,Marketing is seen as more of a solution to help than a budget line to cut,Strategy first: We set our advertising strategy to take advantage of opportunities in the downturn, then try to come up with a budget to ach
6、ieve the strategy,Budget first: We reduce our budget, then come up with a strategy to do the most we can with that budget,Dont know,61%,27%,12%,Advertising on the Edge. Economist Intelligence Unit Survey,The importance of not cutting back,Because there are proven negative impacts on brand position a
7、nd profitability if marketing expenditure is reduced during a downturn Barwise,IPA,PIMS,Data2Decisions,Its a short-term fix Brands that cut back emerge from the downturn weaker and less profitable Long term profitability means maintaining Share of Voice above Share of Market,The importance of holdin
8、g a long-term view,The benefits of advertising materialise in the longer term 50% achieved in year one with the remaining 50% in years 2 to 4 The impact of advertising cuts may not be realised immediately. This may be misleading and harm the business in the long term,Date2Decisions.ROI defined as th
9、e incremental revenue generated from advertising per unit of spend,The importance of not going dark,Two key brand relationship metrics Usage and Image suffer when brands “go dark” for six months or more (See chart opposite) There is also a danger that by falling silent a brands buzz score will decli
10、ne, with the brand more likely to be judged on-the-way-down,60% of brands which go dark decline on at least one key brand metric,increase 11 22 decrease (24) (28),The importance of bonding,There is a strong link between market share and brand-to-consumer bonding, an aggregate of brand-consumer metri
11、cs Less investment in marketing communications leads to lower bonding and lower market share Millward Brown,The importance of maintaining share of voice,Brands which cut their budget, relative to their competitors, have a higher chance of losing market share,IPA DataMine,When share of voice minus sh
12、are of market is negative, a much higher percentage of brands lose market share,Because share of voice drives growth,Analysis of 880 case studies shows a correlation between share of voice and share of market gain or loss,As a rule of thumb, for every 10% points that share of voice exceeds share of
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