The Australian Association of National Advertisers (AANA) has warned brands against cutting their marketing budgets and argues advertising is crucial to economic growth.
AANA chief executive Scott McClellan said the ad industry can help buffer the Australian economy buffer against the worst effects of a recession. While ad revenue through agency bookings was up year-on-year in April according to SMI figures, media companies, especially in publishing, have been struggling with decreased profitability.
McClellan cited a McKinsey report which said advertising drove 15% of gross domestic product growth in major G20 countries. The report also outlined how introducing digital media into the communications mix enhanced revenues, profitability and market share.
McClellan said: “This data should give pause to any company considering trimming their marketing spend heading into the 2012-13 financial year.
“This highlights the important role marketers play in driving innovation, which leads to economic growth. Policies that restrict advertising freedom, especially in the rapidly emerging digital and social media space, will damage our economy and should be avoided.
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