AdNews asked industry figures for their assessment of 2022 and outlook for next year
Lee Simpson, CEO, whiteGREY
For our industry here in Australia, there were reasons to be cheerful in 2022. The start of the year brought a new sense of optimism which has been reflected in solid growth, illustrated across independents, most of the major marketing Groups and media spend. At whiteGREY, we experienced this ourselves with growth above 2019 levels and +25% headcount change (despite the talent challenges) in line with the commercial upside.
But along with the upside, there is a more sobering downside. If there is one thing the last couple of years has taught us, we aren’t immune to global factors down under. A shifting geopolitical landscape, a war in Europe impacting energy prices, global supply chain challenges and more. And dark economic clouds have started to form here with inflation over 7%, the highest interest rates in 9 years, stagnant wage growth and according to ANZ, reduced consumer confidence (levels not seen since 1991). This macro context will mean an increasing number of consumers will scrutinise their spend – the money they give to our clients. And we all know what can happen next.
So, what does this mean for us as an industry in 2023? Or more importantly, how can we navigate this with clients?
Well, put simply, when we understand and resolve the right tensions, we will find the extraordinary outcomes.
Yes, consumers will scrutinise spend. But when they do, there is an opportunity for some brands to pick up a switching user or elevate an experience to secure an existing shopper.
Of course, tougher economic conditions will apply pressure to marketing budgets. But rather than a sweeping statement (or worse action), the nuance is understanding where to invest for growth and where you can consider trimming.
From a media perspective, we know the evidence supporting ongoing investment to accelerate out of tough times more rapidly than your competitors. But understanding the balance of the long AND the short for a specific brand is the trick.
The well-publicised data breaches have no doubt highlighted privacy in the minds of Australians as they become more protective of their data. But while people may not precisely know the value of their data, they know it is valuable. What opportunities does that present for brands to create a new value exchange with their customers?
For start-up clients in particular, the inspiring direction often articulated in a Purpose can still be relevant. But in a world of tightening capital, so will the focussed pursuit of profit.
And whilst sustainability will continue to build as a cultural demand, consumers will expect sustainability to be balanced with affordability. A new way to look at quality and price when delivering value.
In a year of more challenging and nuanced tensions to resolve, wise counsel will never be more important in 2023. And agencies who can provide it, never more valuable. And that has to be a reason to be cheerful.
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