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Advertising After The 2008 UK Recession

Rob Miller | Monday September 26, 2011

Categories: A Level, Eduqas (WJEC) A Level, WJEC A2, WJEC A2 Media Studies, WJEC AS, WJEC AS Media Studies, Advertising, More on Advertising

  • Declining media revenues including Advertising since mid 2008 (start of recession)
  • Advertising spend is an indicator of confidence in a brand e.g. current low production value Honda advert (Feb 2010) compared to 2003-2007 Power of Dreams campaign (Wieden and Kennedy) Car companies like Honda have dramatically reduced advertising spend.
  • Argument 1 – short term reduction in advertising spend can be costly in the long run.
  • Argument 2 - previous recessions suggest continued advertising spend ultimately leads to increased sales and consumer confidence – risk taking

  • Advertising = ‘building blocks’ (gradually maintaining brand identity) i.e. why reduce advertising spend just because there is a recession?
  • In general many brands are operating ‘high risk’ strategies with saturated advertising campaigns hoping customers will spend their way out of the recession e.g. Barclaycard Pipes/Roller Coaster (2010) by BBH.
  • Lower production value brands are increasing advertising spend e.g. Vauxhall Corsa CMONS campaign 2007-2010 (see current ‘Pop Art’ commercial, non-diegetic music by Gnarls Barclay)
  • Increased Charity advertising spend potentially reflects changes in society e.g. Barnardos ‘Believe in Children’, moral panics (recession, redundancies…) and general anxieties
  • ITV has been in permanent decline for a few years but may not be directly due to the recession, Sky 1 is now the major commercial broadcaster in conjunction with the success of C4. Narrowcasting is now operated extensively.
  • The Advertising Agency has become more fragmented with new technologies – fewer full service agencies, more on-line and creative agencies. Full Service Agencies like BBH that will only survive because they are established and the majority of their clients are ‘blue chip’ e.g. Vodafone, Barclaycard and Levis.

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