With the recent publication of the latest IPA Bellwether Report for Q3 2022, there is cautious optimism for the next few months ahead as we navigate a cost of living crisis and recession. Here are some insights from leading industry experts.
“As expected, the cost-of-living crisis and inflation are impacting both marketing budgets and the industry’s outlook on the future. However, it is worth noting that investing in smart communications efforts in tough times can give players a competitive edge, especially if they focus on increasing value and enhancing strategies.
“Companies that avoid cutting their advertising budgets throughout a recession often come out on top, boosting margins and driving revenue, and it is this kind of forethought that leaders need to keep in mind. Now, where this money goes is more important than ever, and brands need to have reliable, effective solutions.”
“Given the compounding pressures on marketers to drive efficiency and results, applying an omnichannel approach to eliminate siloed channel performance, and a test-and-learn mindset to media investment has become crucial. Now, more than ever, marketers should be leaning into tools like programmatic to de-risk their investments through guaranteed media and business outcomes.”
When asked for his insights, Xandr Director of Programmatic CTV Supply, Hunain Khan, said:
“CTV is an area of digital video that marketers should pay close attention to. With economic uncertainty a reality for UK consumers, households who have multiple subscriptions might be looking to consolidate their TV viewing into one provider or to move their subscription into the AVOD format. In this scenario, free-to-view AVOD services are a good place to pick up new viewers, and so these publishers have an opportunity to establish themselves as effective media partners for brand advertisers.
Investing in channels like CTV allows marketers to target specific segmented audiences, allowing brands to maximise their ad spend at a time when it matters most.”
A Million Ads
Adding to the comments above, A Million Ads’ Senior Marketing manager, Harry Williams said:
“Whilst it’s disheartening to see that main media marketing budgets – which includes radio – have fallen for the first time since Q1 2021, this decrease was only mild overall, indicative of a cautious reduction amid rising risks to the UK economy.”
“Understandably, brands will now be wanting to work with partners who can build brand awareness whilst driving clear ROI and getting the most bang for their buck.’
Commenting specifically on digital audio advertising, Williams shares:
“[Driving ROI] is where digital audio can take centre stage by utilising techniques such as addressable advertising, thus bridging the gap between data and creativity.
In fact, as one of the fastest growing advertising mediums, digital audio is consistently innovating to ensure new trends are accommodated. For example, it’s now possible to create ads that do not simply just target consumers with products and services but are actively using data available to make the consumer’s decisions easier. And this is why I predict 2023 will be a bumper year for the channel.”
The Full Report
For more insights from other industry leaders, read the full article on Performance Marketing World.