Just one part of the puzzle…
I WRITE IN RESPONSE to the report headlined “How to cut advertising costs”(15 January 2009). Francesco Mariola’s Media and Business Tracking Solution (MBTS) offers a way of analysing media spend with a view to cost cutting. It’s natural (even prudent) for marketers to look to strip out costs in times of economic downturn, particularly those of advertising for which it’s notoriously difficult to measure ROI. (We all know the quote about “half my advertising money is wasted, I’m just not sure which half...”)
My contention is that looking at media alone is but one part of the puzzle. What marketers should be thinking about during a recession isn’t advertising but their overall brand strategy and total marketing activity/budget.
As Graham Mackay, CEO of SABMiller, said at a business breakfast in Johannesburg recently, advertising is only a small part of its marketing activity. And as Warren Buffett recently said to some investors, his criteria on whether or not to buy a company in order of priority was: the quality of the brand(s) owned, a good management team and only then the balance sheet.