How advertising can help business grow in the present climate

1. Consumer Confidence and the Media Market Overview and Analysis Prepared by GT Media Sources include: Amarach, Behaviour Attitudes, Nielsen, TNS

2. Consumer Sentiment The Economic Backdrop

4. Source::ERSI Consumer sentiment is worse than the economic reality. Negative media reporting is creating public gloom media gap Spooked Consumers...

5. 58% There are significant fears about job security and the threat of unemployment is top of mind for many Real Fears..

6. Source::CSO Unemployment is rising and this has a direct and significant effect on consumer sentiment 400,000 now on live register 100% increase in 12 months PROJECTED TO RISE TO 500,000 Wrong Way..

7. Source::CSO As unemployment grows consumer sentiment shrinks– we are now at a 20 year low Happy Days Dark Days Good Times..Bad Times

8. There is a general acceptance amongst the public that the recession is affecting them in a similar fashion All Together..

9. 83% expect to be effected The Irish population are expecting that the economic downturn will continue to impact negatively in the future Not Looking Forward..

10. Whilst personal economic consumption is forecast to decline the paradox is that personal savings will rise this year Tough Going.. Will there by cash reserves available when confidence returns

11. Back to the Future.. Retail activity is falling to 2003-2004 levels The volume and the value of retail activity is plunging to 2004 levels and the fear is that they will continue to fall to 2001 values

12. The fall in consumer spending is reflected across all categories Source : CSO Seasonally Adjusted Retail Sales Index - preliminary estimates April 2009 Retail Slump.. Furniture & Lighting down 42.8% Food, Beverages, Tobacco down 3.5% Electrical Goods down 25.9% Clothing, Footwear & Textiles down 20% Department Stores down 14.6% Motor Trades down 51.9%

13. Media Market Review

15. Media in Crisis Will Independent News & Media Survive in its present form? In receivership Local Press in Freefall ‘ papers closing down TV3 suffering will investors stay? RTE is insolvent € 68M losses

16. Media Overview The effects of the recession have opened up tremendous opportunities for advertisers who are in a position to invest in media at present

17. For Example

18. Offer Example June 1 st – June 14 th 150 NATIONAL 48 SHEET POSTERS € 141,600 Ratecard Value We could have bought this for €60,000 - and gotten the poster printed for free

20. Our Perspective

21. Everything changed in the space of a few weeks last Autumn. There is nothing safe or settled about the economy anymore. From each past crisis have come new industries, new ways of doing business and new way of earning a living. Chances are it will be the same this time around. Not the end.. just a new beginning

22. It is clear that our economic circumstances have in many cases put the finance department in the ascendancy and – but by eliminating marketing investment they risk strangling the business. Cost cutting measures are crucial to the survival of business but marketing is its engine for growth. Marketing activity is key for those who hope to survive and prosper in the present difficult business environment “ It is vital that marketing and finance work jointly to demonstrate the real value of marketing to the bottom line” - Return on Ideas report from Institute of Marketing & Institute of Management accountants, Marketing is the key..

23. The slowdown in economic activity has led to a significant decline in advertising activity and brand support during 2009 – across all sectors. As companies look for cost saving measures the advertising budget becomes a soft target and is still viewed by many as a cost rather than an investment. This, in spite of all the evidence that those who continue to promote during recession fare significantly better than those who do not. Brands will die..

24. Clear Evidence..

25. In a study of 600 companies McGraw-Hill research found that sales of aggressive recession advertisers (those who maintained or increased spend) had risen by – Proof positive

26. It is time to stop looking backwards. Companies must begin to accept that we are now in a new reality and that it is actually irrelevant what size the market used to be and start asking; ‘ What size is the market now’ and how can I grow my share of it? There are still sales to be fought for and consumers will continue to be attracted to visible brands. It is easier to stand out in a quieter environment. Innovation is the future. Only by embracing the reality of change can companies and brands move forward. Acknowledge that markets have changed and that consumers are now demanding more. New and innovative communication strategies will reward those who are wise enough and brave enough to adapt. They will survive the current downturn better than their competitors and have a far better chance of prospering in the future. Our View.. It’s easy to say but..

27. Thinking Big Takes Audi From Obscure to Awesome Strategy to Stand Out While Others Scale Back Delivers Big for Brand In the US Audi's brand awareness, brand opinion and buyer consideration are all up substantially in the past two years. "We want to send the message that this is a brand that's moving forward and is active, why would we go backwards now when the industry is generally locking the brakes and cutting spending?" Scott Keough CMO Audi He said the brand will spend 15% more on marketing this year than 2008, including events, online and media. From the second quarter of 2006 through the third quarter of 2008, Audi's brand awareness increased from 62% to 71%. In the same period, brand opinion rose by from 65% to 78% and brand consideration jumped from 35% to 52%. Brave companies are forging ahead

29. One of the clearest effects of recession has been the reduction in the cost of advertising caused by the drop in demand from advertisers. Just as consumer markets are falling to 2003-2004 levels so too are advertising prices. Substantial additional discounts and added value offers are currently available to advertisers who are active in the media. It has never been more affordable to increase presence and share of voice Never a better time to invest...