Don’t stop the spend, people are listening
Barry O'Brien thinks we're currently living through the toughest times of this century, at least. And there is no doubt many companies are either cancelling or getting ready to cancel advertising campaigns. Here, O'Brien explains why brands need to maintain their level of ad spend to make it out the other side as unscathed as possible.
As more and more Australians work from home, consumption of most media is increasing, including big jumps in the time spent with free-to-air TV and digital media. At the same time, marketers’ spending on media advertising is falling, with dire predictions it will crash 40% over the next few weeks.
No-one should be surprised that marketers are not capitalising on the surge in media audiences. COVID-19 has turned our lives upside down. Consumer and business confidence has been shattered. No one knows what the next week, month or year will bring. It has been a constant refrain among marketers that an economic downturn is the best time to crank up their advertising. That’s true. The problem is that no-one knows what this downturn is actually going to look like, how long it will last, or what the world will be like when it ends.
What we do know is that people – in particular, housebound people – are increasingly turning to media for information and for entertainment. Several media sectors are seeing strong audience growth:
- Free-to-air TV viewing is up more than 10%, including a lift of more than 15% during the day;
- Traffic to News Corp Australia’s websites has almost doubled over the past week;
- Sales of newspapers are on the rise, although that won’t last as more people self-isolate;
- Radio audiences are growing: Southern Cross Austereo says 10% of its audience is listening to more radio than they were before the COVID-19 outbreak and 20% expect to listen to more over the next month; and
- Anecdotal evidence suggests viewing of Netflix, Stan and other streaming services is growing, although there is no independent research to prove that.
There is no doubt consumption of most media is growing and will continue to grow. There is also no doubt many companies are worried and are either cancelling or getting ready to cancel advertising campaigns. Right now, there has never been a more important time for agencies to step up and demonstrate the value we bring to our clients.
At times of great uncertainty, we all look for strong leadership to unite and guide us. Our clients are trying to operate in a rapidly changing and incredibly uncertain environment. They need timely, insightful and strategic guidance to protect their revenue and brands. That is our expertise. That is where we can partner with our clients to ensure that we minimise disruption, that we capitalise on changing consumer behaviour and media consumption patterns, and that we create innovative approaches in a changing media landscape.
There are the very obvious opportunities, such as taking advantage of the heavily discounted ad rates most media companies are offering right now. Agencies with online retailers as clients should be encouraging them to crank up their marketing, as online shopping is strong at the moment.
There are other obvious opportunities that require more thought and planning – for example, how to tap into a growing sense of isolation. People need and want to remain connected, and marketers can help.
Telstra hasn’t cut its ad spending, but it has completely changed its messaging to focus on how it can help people. The supermarket chains are still advertising, but many of their ads are now like community service announcements – as they should be right now, given the panic buying we’ve seen. Other companies need to be thinking about how they can genuinely make people feel less isolated and more connected.
Marketers should be doing whatever they can to help people, in tangible and intangible ways. It’s the right thing to do for Australia and, yes, it’s the right thing to do for their business and their brands. We, as marketing services companies, need to be doing whatever we can to help and guide our clients.
Southern Cross Austereo’s sales team recently sent a document to media agencies that talked about why it’s important for companies to keep advertising during a downturn. The document contains four “golden rules” that, while they weren’t written with COVID-19 in mind, offer some great advice:
1. Know your customers
Invest in getting to really know your customer and their purchase journey. Their priorities may shift during hard times so make sure you know what’s important to them now and when things change.
2. Target your most valuable customers
Keep in touch with your customers, especially the valuable ones. As people re-evaluate every purchase decision, brands that aren’t communicating with them are exposed and vulnerable.
3. Empathise with their world
Recognise and reflect the realities of the new world as your customers see it. It’s an opportunity to reinforce your strengths.
4. The economy will bounce back
A sound approach to marketing in tough times will place a brand on a springboard for success when that recovery comes.
Clearly the fourth rule was written before COVID-19 hit. We’re not living in “tough times”. We are living in the toughest times the world has seen this century at least. No one knows what the future holds.
All we can know – and deal with – is what’s in front of us now. Right now, it’s critical for everyone in the marketing business to work together to find opportunities.
We all want a strong economy. It’s up to us to do everything we can to achieve that.
Barry O’Brien OAM is chair of Atomic 212
Well done Barry.
Cheers
Miles
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“Anecdotal evidence suggests viewing of Netflix, Stan and other streaming services is growing, although there is no independent research to prove that.”
ISPs and networks have confirmed two-thirds or greater usage since the outbreak; Netflix is reducing bitrates in Europe to deal with the massive load. There’s plenty of info around that streaming services are getting hit the hardest, far more than free-to-air; see the Communications Minister’s letter to the services just yesterday.
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Wow, is this guy not to watching the news?
“Barry O’Brien thinks we’re currently living through the toughest times of this century and explains why brands need to spend more money and find marketing opportunities.”
Is this for real?
How about being a responsible corporate business and focusing on people. Amazon sends free supplies to the elderly, Woolies and Coles create unique hours for those in need and this guy wants us to hunt down marketing opportunities.
How about rallying round and creating a fund for those who have died or will soon and not trying to make a quick buck off people watching funerals and the dying on TV. In the weeks to come we will be seeing dozens of funerals occurring in every city everyday. This is going to touch all of us in the industry and trying to squeeze a bit of commission or a few dollars out of a client at a time of global crisis is disgusting.
We need to come together as an industry and come up with a response that can make a difference to those in need.
We have some of the best creative minds in the world in Australia and a ream of big media agencies who can lean on their media friends to come up with something valuable, real and fast.
Whats happening is unprecedented. Real leaders will emerge and be seen over the forth coming weeks and months.
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Im sorry but this opinion piece is in pretty bad taste and at best is naive, at worst, “carpet bagging”.
And it’s also in sharp contrast to business leaders like Scott Farquhar or Melanie Perkins whose advice and focus right now is on people. Canva is paying casual staff and occasional employees full time salaries not to work while Atlasssian is forgiving client debt and invoices.
What’s needed is empathy and an absolute focus on helping those most in need, not advice on how to exploit day part ads. The last thing Italians in Lombardy need is a smart targeted ad offering to test drive a car, buy a new sofa or switch telcos.
There is a reason Australian marketeers have reduced spend and it’s because they care about Australians and Australia. It’s about doing the right thing and having class at a time like no other in our history.
I think the gravitas of our circumstances today in Australia are clearly lost on the writer.
In the words of Scott Farquhar speaking on 60 Minutes about the Covid 19 virus in Australia – we will be remembered not for where we end up but for how we get there.
#stopthespread
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… not exactly a hearts and minds winner.
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https://mumbrella.com.au/the-time-to-plan-pr-for-a-post-covid-19-world-is-now-622058
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This is a pretty balanced view from Chris Savage. While I don’t agree with everything he says, some of it is the reality check we are probably avoiding he also actually replies to comments and answers questions which is pretty cool.
https://mumbrella.com.au/agency-execs-navigating-covid-19-need-to-act-like-true-leaders-but-prepare-for-more-bad-news-and-potential-job-cuts-621791
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Hello Barry,
These things can rattle out of control particularly when people you know start getting ill and worse. Clients will want to distance themselves from those deemed to be trying to take advantage of others in a humanitarian crisis like we are in today. Particularly bluechip brands and government clients who need risk free advice that assists them in maintaining or at least not destroying the relationships with their customers that they will of course be picking up again and as soon as the crisis we are in begins to settle.
I would suggest sending an open communication to clients demonstrating that you are observing how things are developing and how previous advice is no longer valid. We see this with the government all the time and in this crisis. Circumstances change and therefore so does advice.
Be dynamic, be transparent, be willing to admit when you have got something wrong and do it fast. We have entered a new era where things really are changing daily if not quicker.
Get on the front foot, stabilise the situation and be honest.
Happy to chat https://www.elevatecom.com.au/issues-crisis-management
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Feels like a badly disguised self-seeker opportunity by Atomic.
It plays to the narrative that media planning and buying should really sit with different agencies. This is one of the reasons media was split years ago to help regulate process that is prone to advice that is not objective.
It is the job of the sales people to present opportunities and gratuitously steer them in the direction of their businesses. We expect this and rely on it.
It is mot the job of the agency however to steer clients to opportunities that line their own pockets.
Then again it might just be really badly written or badly timed. Either way its time to love our customers and hope they stay with us for the journey.
https://mumbrella.com.au/sbs-closes-sydney-newsroom-as-employee-tests-positive-for-covid-19-622454
#stopthespread
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My husband and son, who still lives at home and who work for publishers, lost their jobs this week and both stood in the rain yesterday queuing outside Ryde Centrelink with hundreds of others.
I can assure you the last thing we are interested in is being hit with some opportunist advertising when we are trying to work out how we will be able to pay the mortgage in May.
It would be good to hear O’Briens view on what targeting opportunities have opened up for the new 23% unemployed in Australia.
What stupid, thoughtless advice.
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Mr Barry O’Brien, do you know there are 460,250 people ill and over 20,857 adults and children dead?
Are you or your agency doing anything to help people in need, you may want to consider this as clients and staff look more favourably on courage and kindness than opportunism and exploitation.
Repent, this could be the end of the world as you know it.
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