The Budget: every cloud…

Doom! Gloom! Swingeing cuts! While the emergency budget may make for depressing reading for many sections of the UK, what does this practically mean for the advertising and marketing industries?

The advertising industry is one of the most cyclical of all industries – by this I mean that it very closely tracks macro economic movements in terms of UK GDP. Typically, it follows GDP’s suit around two quarters later which means good news over the next year or two if the government’s forecast and the Bellweather Report are to be believed.

Clearly however, the changing financial landscape will affect parts of the UK differently. Were I parent relying on child benefit or a public sector worker seeing consumer goods prices rise thanks to VAT while knowing that my pay was frozen for the next two years, I would not be enthralled by my prospects. Broadly though, the prime ABC1s beloved of advertisers will still be available and willing to spend, so what is the big impact going to be? Regionality – that’s what.

To be more specific, it is not macro regionality, but dynamic shifts within regions at a much more micro level. This will particularly be evident in place such as the North East where there is a high level of public sector employment. Where the region as a whole will probably be adversely affected, some specific areas will remain relatively unaffected thereby creating pockets of people who are disproportionately wealthy compared to their surrounding peers.

This clearly represents an opportunity for highly targeted strategies – where the difference between good and bad targeting can be as wide as just a street or a town, this is extremely vital. What we will see coming into effect is the increased use of micro-targeting, particularly with techniques such as IP flooding, retargeting and postcode level display and emails.

mc&c have previous in this area – have a look at the First Bus case study on the website to see how successful such a strategy could be.

These techniques will enable you to reach customers in more intricate ways – perhaps even down to single contacts. I’m not sure that we could target your vitriol at George Osborne though.

Tim Part, Business Development Manager