Deadly middle way
Op-Ed: For the first time, the recent recession has not led to a flood of hard-selling promotions. And that’s just as it should be, says Dominique von Matt.
Guest commentary For the first time, the recent recession has not led to an inflation of hard-sell promotions. And rightly so,
finds Dominique von Matt.
At first glance, you might think that this recession has been like any other. After all, the marketing mantra this time too was "advertise anti-cyclically now". Clearly, the voice of a brand is more audible when the overall concert is quieter. You can achieve more with the same amount of advertising. Nevertheless, counter-cyclical advertising remains a phantom: everyone talks about it, but no one has seen it, and once again the issue of quality was completely lost in the heated discussion about costs. Do we waste money with boring mainstream advertising or do we use it efficiently with high-profile communication? That is the key question. Investing in the quality of communication is the most efficient way of all. And it's also usually free. Because an average campaign costs the same as an outstanding one. In short: better advertising quality does not require more budget, but more professionalism, creativity and courage.
Especially in economic crises, creative courage is rewarded by the market, as a look at this year's Effie winners shows. The award-winning productions were anything but bold and risk-free recession campaigns. Many finalists took the central marketing principle for recessions to heart. For once, this was neither Domizlaff's nor Kotler's, but dates back to the early 17th century by Friederich von Logau: "In danger and great adversity, the middle way brings death."
And this brings us to the most pleasing result of this recession: for the first time, the brand did not suffer. Obviously, the realization that serious brand management should not be dependent on the economy is gradually gaining ground. In the slump from 1991 to 1993, a lot of resources were frantically shifted into hard-selling promotions; this time, there was largely no such overexploitation of brand capital.
Perhaps those responsible were already thinking that brand value would also become an issue for listed companies in Switzerland from 2005. A survey of 400 German companies by PricewaterhouseCoopers shows that brands account for an average of 56 percent of the company's value and are therefore very often the most important asset
represent. This means that brand management has very clear rules and - more importantly - tangible economic consequences. Branding and brand value are now also becoming a key issue for CFOs. This gives rise to the hope that the next recession will see a real increase in anti-cyclical advertising for the first time.
> Dominique von Matt is President of the Swiss ADC and co-owner of the advertising agency Jung von Matt/Limmat.
finds Dominique von Matt.
At first glance, you might think that this recession has been like any other. After all, the marketing mantra this time too was "advertise anti-cyclically now". Clearly, the voice of a brand is more audible when the overall concert is quieter. You can achieve more with the same amount of advertising. Nevertheless, counter-cyclical advertising remains a phantom: everyone talks about it, but no one has seen it, and once again the issue of quality was completely lost in the heated discussion about costs. Do we waste money with boring mainstream advertising or do we use it efficiently with high-profile communication? That is the key question. Investing in the quality of communication is the most efficient way of all. And it's also usually free. Because an average campaign costs the same as an outstanding one. In short: better advertising quality does not require more budget, but more professionalism, creativity and courage.
Especially in economic crises, creative courage is rewarded by the market, as a look at this year's Effie winners shows. The award-winning productions were anything but bold and risk-free recession campaigns. Many finalists took the central marketing principle for recessions to heart. For once, this was neither Domizlaff's nor Kotler's, but dates back to the early 17th century by Friederich von Logau: "In danger and great adversity, the middle way brings death."
And this brings us to the most pleasing result of this recession: for the first time, the brand did not suffer. Obviously, the realization that serious brand management should not be dependent on the economy is gradually gaining ground. In the slump from 1991 to 1993, a lot of resources were frantically shifted into hard-selling promotions; this time, there was largely no such overexploitation of brand capital.
Perhaps those responsible were already thinking that brand value would also become an issue for listed companies in Switzerland from 2005. A survey of 400 German companies by PricewaterhouseCoopers shows that brands account for an average of 56 percent of the company's value and are therefore very often the most important asset
represent. This means that brand management has very clear rules and - more importantly - tangible economic consequences. Branding and brand value are now also becoming a key issue for CFOs. This gives rise to the hope that the next recession will see a real increase in anti-cyclical advertising for the first time.
> Dominique von Matt is President of the Swiss ADC and co-owner of the advertising agency Jung von Matt/Limmat.
