Stewardship of the Advertising Budgets
My Ouma would always remind me to “look after your cents and the rands will look after themselves.” It’s worth pointing out that my Ouma was a Hollander.
It takes me back to my days as a young trainee in the advertising industry. My then mentor and senior group director would constantly stress money matters as part and parcel of my brand stewardship obligations.
“Remember that’s not your money that you’re so freely spending…it’s your client’s.”
Decades later and the advertising industry in South Africa, and indeed worldwide,
Is under enormous strain with agencies battling to keep their heads above water and
doing their utmost to stretch their client’s budgets to the max. With the result looking after every cent is currently not so far from the truth.
The South African ad industry is in a state of stagnancy. For sure it’s not growing.
Those in the know tell us there are numerous reasons for this sad state-of-affairs.
The primary ones being our nation’s poor economic standings – with low growth
and ultra-high unemployment, coupled with the volatility of our geopolitical arena.
Corruption in State Owned Enterprises, our failing municipalities and the brothers Guptas, all lean towards the ‘let’s wait and see’ caution and adds fuel to the
‘let’s not spend the money now’ strategy fire.
But back to (b)rands and cents. Brand managers and marketers are naturally concerned about where, how and with whom they invest their annual budgets.
And so they should be. Agency staff and brand custodians need to be reminded of
their fiscal responsibilities, and accountability duties, to marketing monies that are becoming increasingly hard to attract.
One advertising executive summed it up neatly when he publicly remarked:-
“To break even in the ad industry has now become the new profit.”
A very negative outlook if ever there was one, but no doubt true for many.
As a farewell parting note, take heart in the fact that brands that do manage to
maintain their advertising spend in a market recession, when the tide turns, will
and do come out the other end booming ahead of their competitors.
Not entirely convinced? Just ask Coca-Cola.
