Brands are seeing pressures build on their advertising budgets, being asked to do more with less, the peak body for advertisers, the AANA, told its members today.
Being Better, the theme for RESET 2023, the annual conference of the Australian Association of National Advertisers, was chosen for three reasons.
CEO Josh Faulks: "The first is to recognise the power of our industry to be a force for good.
"The second is to acknowledge that community expectations have shifted and consumers are demanding more of us now. They are demanding we be better.
"And finally, we chose this theme as a challenge to ourselves as leaders in this industry. How can we lead our businesses to be even better?"
He says the industry is facing challenges.
"We all know about the stubbornly high inflation and the 10 consecutive interest rate hikes and how that is causing a cost-of-living crises for many Australians.
"That means brands are asking consumers to pay more for their products, with less, which is the ultimate test of brand loyalty. At the same time, the cost of doing business, for so many is rising dramatically, which is squeezing margins."
That means pressure on marketing budgets, on CMOs and marketing teams to perform.
"And it means pressure to demonstrate a clear return on that marketing investment, he says.
"For a few months now, I have been saying to anyone that will listen, that now is not the time to cut marketing budgets. Now is the time for us to invest in brands to position for the inevitable recovery.
"There is plenty of research and evidence out there that supports the proposition that brands that maintain or increase marketing spend during a recession or downturn clearly outperform their competitors and are much better positioned for the recovery."
He is optimistic. "I'm going to keep talking up this industry
"Our industry is critical for Australia's prosperity, especially when the economy slows. Together, united, we are a strong force for good and we will make a difference.
"There is a very strong argument that these economic times should be seen as an opportunity for brands: An opportunity to expand deeper customer connections; an opportunity to increase excess share of voice; and an opportunity to gain market share in the long term."
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