James Rose.
The AdNews end of year Perspectives, looking back at 2024 and forward to next year.
Channel Factory Australia Managing Director, James Rose
Let’s face it - 2024 has been tough.
The economic headwinds that already plagued us through 2023 persisted into this year, testing our resilience and forcing businesses to make difficult decisions.
Most of us probably knew that’s what this year was going to be like and, depending on how well you prepared, there have been businesses that did very well this year and those that haven’t. It has also created something of a two-speed economy, where despite flat budgets, businesses that work within specific booming channels have been able to perform well.
For many, being stuck in survival mode for the last few years has meant cutting costs, optimising processes, and stretching every dollar. These strategies have largely been necessary, but they’ve also come with a cost of their own: stifled innovation, reduced capacity, and in some cases, a retreat from long-term vision.
The reason I bring this up is that as we edge closer to 2025, there’s a faint but undeniable glimmer of hope on the horizon - signs that the economic tide might finally turn. If I were to put a timeframe on it, my prediction (based on the worst sort of research there is- pub chats) is that in about six months the economy will take an upswing and investment will begin to ramp up again.
Pub sources aside, this isn’t about blind optimism, it's pragmatism. Economic cycles teach us that downturns don’t last forever, and when recovery comes, it often favours the prepared. The question isn’t just, “When will the economy recover?” but also, “Will we be ready when it does?”
On that note, I have two key ways in which businesses can best prepare for 2025.
Use talent as a catalyst for recovery
If 2024 taught us anything, it’s to truly treasure your talent.
Over the last 12 months, we saw a significant correction in the job market. Last year there was a talent shortage, and most people who were unemployed in this industry would have been able to find a new role and a pay bump fairly easily.
The tables have turned and this year there’s unfortunately a lot of great talent out there and not enough roles for them, particularly in the mid-senior space.
But this moment is not going to last. I would encourage any business to think about what their needs are going into next year and use this time to attract, retain, and empower the right people. Not just employees who can execute today’s tasks, but those who can envision and build tomorrow’s opportunities.
This is particularly important in our industry, where service, creativity and innovation is essential in fuelling healthy competition. Businesses need people who can navigate this landscape with confidence, and getting started on the hiring process now means your team will be ready when things kick up again.
It’s also important to note that just hiring the right people isn’t enough. Businesses also need to nurture and invest in their existing teams. Reskilling, upskilling, and creating environments where people feel valued and inspired are all key in unlocking potential. For the slower months of January and February (allegedly), this might be a good time to plan some important skills training.
Shifting our focus to value over cost
As an industry, we spend too much time talking about cost and not enough time talking about value.
This is a symptom of our short market, where the focus is on short-term outcomes at the expense of long-term strategy. That’s also a reason why there’s so much uncertainty around measurement right now, with various companies competing to be the one solution a brand needs in order to understand the full scope of its marketing activity.
Our inability to articulate value is one of our biggest challenges and unfortunately this often extends into the C-suite. Marketing is always the first department that’s impacted when macroeconomic factors come into play and we’re the first to course correct when things look good.
There’s a lot that is out of our control, but being able to effectively communicate value is one of the most important things I think any business should be bringing into next year. I personally love a tough market, because I think it gives us a rare chance to stress test our businesses. It puts the pressure on you to actually articulate value and position yourself well for when the macroeconomic environment turns around.
Smart brands recognise that visibility, consistency, and connection with their audiences are more critical than ever during a downturn. These efforts don’t just maintain the status quo - they lay the groundwork for future growth.
While the landscape will stay grim for a little while longer, there’s every reason to believe that brighter days are ahead. Consumer confidence is starting to show early signs of recovery and across industries, we’re seeing a renewed focus on building meaningful connections with customers, partners, and communities.
By doubling down on talent, prioritising value over cost, and staying committed to long-term growth, businesses can ensure they’re hitting the ground running in 2025.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
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