When the going gets tough, BTL works hardest

In the wake of the ongoing global credit crisis, international and local media buyers and market research firms are predicting further shrinkage of marketing and advertising spend by companies in 2009. South African consumers have cut back their spending on everything from luxury goods to basic household staples to the extent that the SA Reserve Bank warned, in its December 2008 Quarterly Bulletin, that the economy was set to continue its sharp decline after reporting the biggest fall in consumer spending in a decade.

This drop in consumer confidence was also mirrored by TNS Research Surveys' Market Sentiment Index (MSI) study, conducted in November last year.

Feeling the pinch

There's no doubt about it; the advertising industry is feeling the pinch. The strong growth that represented South African advertising budgets from 2004 to the end of 2007 seems to be a thing of the past, with annual increases in ad-spend reportedly showing a 55% slow down between 2007 and 2008 compared to previous years.

Globally, with the US and several countries in Western Europe officially in recession, ad markets in these regions have reacted by diminishing even more quickly than the wider economy.

When times are tough and the value of money is eroding significantly, marketing campaigns need to work harder. More so now than ever before, companies should see their marketing investment as part of a proactive response to the economic slowdown.

As consumers tighten their purse strings marketers will need to sharpen their pencils and take the smart approach to media and channel selection. While predicting the future has never been more challenging, two things are clear: advertising is not the only way to increase sales, and below-the-line is poised to capture an increased share of marketing spend because it offers a more accountable, more immediate and more cost-effective marketing vehicle.

Not obsolete

Non-traditional tactics don't make traditional TV and radio campaigns obsolete but enhance them by employing hard working promotional mechanisms that entice consumers to interact with a brand in a measurable and memorable way, thereby increasing revenue through incremental sales volume. Brands can derive more return on their rand by adding effective retail activation to their advertising and marketing plans.

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Brand activation agency thirtyfour specialises in developing activation concepts in line with the strategic direction for the client's brand. As thirtyfour's campaign for Callaway illustrates, agencies need to think smarter and stop relying on the conventional “TV ad first” approach and simply shoehorning a campaign in behind it.

The concept of a golf ball travelling further was brought to life by hijacking driving ranges using ambient posters and a decal that was designed to look like a smashed window. Based on the fact that 75% of golf ball sales are made this way, promotional hit squads were deployed to target golfers' cars in car parks with their ‘smashing' window stickers, specifically designed to drive golfers back into the pro shop. The campaign couldn't have been simpler or more effective - and not a TV ad in sight.

Variety of interactive promotional mechanisms

Instead of relying on the traditional media-buying top-down approach, brand activation makes use of a variety of interactive promotional mechanisms that are best suited to the marketing brief. For example, creating content that travels virally; an interactive game that can be accessed through cellphones; an embedded tag in a poster that allows you to download information to your cellphone; or point-of-sale that is triggered by sensors.

While the options are endless, one thing is certain: competitive pricing and consistent messaging will be more relevant as consumers tighten belts. Agencies set to thrive in 2009 are those that remain accountable to their clients and deliver real return for the brands they work with.