Media buyers worry budget will hit consumer sentiment and retail
Peter Horgan, CEO of OMD
Some of Australia’s biggest media agency bosses have expressed concern about the extent of cuts in the federal budget, and in particular whether the reduction of government support to people on lower and middle income levels may hurt consumer sentiment and the broader retail sector.
Last night’s federal budget announced key changes to taxes and benefits which will cost many people hundreds or in some cases thousands of dollars, which together with the language around broader spending cuts had an impact on consumer sentiment said OMD CEO Peter Horgan. This followed a lengthy period where the government talked-down the economy in preparation for the budget.
“We have definitely noticed a market softening since the rhetoric campaign began,” said Horgan, whose agency has billings of $1.2bn. “The belief was that it was a softening up and the reality wouldn’t be as bad but I think this budget will see a sentiment downturn.”
Just what we need.. a media agency boss commenting on how reduction in govt support may hurt people’s sentiment and propencity to spend.
Cant we ask people more qualified to comment – statisticians, economists, econometricians, treasury department employees, looby groups for the disabled and the elderly, or perhaps even – THE PEOPLE THEMSELVES.
Everyone has an opinion, not sure why media buyers think they are more qualified to judge the impact than those listed above
In that case hmmm … check today’s Morgan poll.
How come Peter Horgan is always in the same shirt?
JUST A THINKER…he’s been one of those hardest hit by the budget and can’t afford new shirts