Advertising is key to Australia’s economic recovery

0
Partner at Deloitte Access Economics, John O’Mahony.

Advertising spending will be of the utmost importance in getting consumers to open their wallets, according to Deloitte Access Economics partner John O’Mahony.

As many emerge from lockdown and the e-commerce boom eases, spending will shift from consumption of goods to consumption of services over the next six months.

However, brands will need to be on hand with appropriate messaging to ensure consumer spending is tracked.

Read more

Deloitte Access Economics projects aggregate household spending to grow 1.6% in FY22, helping to spur a recovery that has been delayed, but not derailed, by the Delta lockdowns.

“The ad spend is going to be very important in getting consumers not only to leave the house but also to open their wallets, especially for service companies like hospitality, entertainment and travel,” Mr. O said. ‘Mahony.

A previous study by Deloitte for the Advertising Council of Australia, Ad Pays, found that every dollar spent on advertising increased the national economy by $ 3 over time, and for every job in advertising there were three other jobs in the supply chain and sectors financed by advertising.

“You have to keep advertising if you want your brand to stay strong,” O’Mahony said.

“A lot of companies are investing in talent and digital because they are important. The brand, as an asset, is no different – it needs investment to thrive, ”he said.

“Businesses cannot trust the pre-pandemic perceptions of their brands – consumers have changed over the past 18 months, in terms of needs and outlook, and advertising needs to reflect that.”

The good news is that ad spending will return to pre-pandemic levels next year, a much better performance than the GFC’s downturn in 2008, where it took seven years to recover, the author of the textbooks of top-selling economy in Australia, Mr. O’Mahony, mentioned.

Australia’s advertising spending is expected to grow 9.1% in 2021, according to the Zenith Advertising Expenditure Forecasts report.

As the federal election slated for early 2022 approaches, the advertising market will be supported by an increase in government and political advertising.

While the confidence in ad spend may be due in part to companies believing the spending habits spawned by the pandemic would be short-lived, Mr O’Mahony said there also appears to have been some “maturing attitudes” towards advertising and the importance of the brand in business as well.

“Yes, the business conditions are better and the nature of the downturn is not as bad as the GFC, but it also looks like there might be more recognition at the management level and in the boardroom, which ‘investing in the brand is incredibly important, “he continued.

“For most businesses, the brand will be their most important asset and it’s something every member of management should care about, whether you are the chief risk officer, the chief human resources officer or the chief financial officer, all of them. these positions have a stake in the value of the brand.

Read more


Source link

Share.

Comments are closed.