Cost-cutting could cost you more than the bottom line

Just a brief observation on Stuart Smith’s excellent article (Media Specialists Being Held Hostage by the Commodity Cycle, MW 21 January).

Stuart was right to point out that an over-emphasis on price when appointing media agencies is good for neither advertisers nor agencies.

Cost-cutting may support the bottom line – but the long-term profits of any organisation are dependent on business growth, which is in turn stimulated by perceptively chosen, accurately targeted and well bought media, running in tandem with outstanding creative work.

As the adage goes, no one saves themselves rich. Case studies across the past 30 years of the IPA’s Effectiveness Awards amply demonstrate that imaginative thinking and great creativity can dramatically lift the fortunes of a brand.

Had these advertisers treated their agencies as mere commodity suppliers – ground down and chosen on the basis of price alone – they would never have enjoyed the success they did.

Geoffrey Russell
Secretary and director for
media affairs, IPA


3D potential spreads wider

Marketing Week

It’s interesting to hear the Pearl & Dean research results suggesting consumers are on the whole both positive and intrigued by 3D television and cinema, but yet to be truly blown away by it (Closer and More Personal with the Help of 3D, MW 21 January).

Kraft’s gorilla tactics

Marketing Week

While Kraft’s takeover bid for Cadbury (MW 21 January) most likely won’t affect global sales, in the UK, Kraft will have to tread carefully. The recession and death of British heritage brands such as Woolworths has without doubt led to a growing sense of loyalty towards British brands among the public.


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