COMMENT: Hard times give the best return on your advertising dollars

<p>On the face of it, nobody would disagree that this has been a lousy </p><p>year for advertising, and it may get worse before it gets better. </p><p><BR><BR> </p><p>The first ill winds started blowing with the dotcoms crashing. Then the </p><p>slowing of economies surfaced. Finally, one cannot gauge what the full </p><p>impact of September 11 will be. </p><p><BR><BR> </p><p>At times like this a little perspective goes a long way. When I first </p><p>came to Asia in 1981, the US was in the midst of a long recession. Since </p><p>then we've had other significant downturns in Asia: in 1986 (Singapore) </p><p>and regionally in 1991 and 1997. Yet during these two decades, </p><p>advertising turnover has grown expontentially. Increasing regional </p><p>prosperity has driven this upwards, but it has also been stimulated by </p><p>the industry's ability to constantly explore new markets and be smarter </p><p>about the ones that we are already working in. </p><p><BR><BR> </p><p>We've all seen the arguments for advertising in a recession. Here's </p><p>another angle. In many ways, there are parallels between investing in </p><p>advertising and investing in stocks. When you buy advertising in a </p><p>recession, it is like buying a mutual fund in a bear market - you get </p><p>more value than if you were doing the same in a bull market. Think of it </p><p>as what investment advisors call "dollar cost averaging". Dollar for </p><p>dollar, the advertising builds more value for your brand when the </p><p>competitive noise level is lower. It is an opportunity to improve share </p><p>which will be even more valuable when times get better - as they </p><p>inevitably will. </p><p><BR><BR> </p><p>The collapse of dotcom mania, which was partly based on the realisation </p><p>that many new media companies were not founded on the principle of </p><p>offering deliverables and a return on investment, have also allowed the </p><p>so-called traditional or blended advertising media to underline their </p><p>accountability in terms of reach and impact. Anyone who invests in </p><p>advertising wants to see value for money, no matter what medium they are </p><p>using and it explains why we are seeing more integrated packages of </p><p>advertising that move seamlessly between broadcast, print and </p><p>online. </p><p><BR><BR> </p><p>Broadening our base of business has also provided some insulation from </p><p>the present downturn. A decade ago, the nirvarna for cable and satellite </p><p>TV advertisers were the 'AB' homes, the niche market of well-off and </p><p>well-educated business professionals and their families who were reached </p><p>with pan-regional campaigns. They are still attractive today, but local </p><p>market opportunities to sell FMCGs and other products that are specific </p><p>to a country now provide equal returns. </p><p><BR><BR> </p><p>No one should just wait complacently for the good times to roll again, </p><p>nor should we bunker down thinking there is little we can do but sit out </p><p>the tempest. As the saying goes: "The best defence is a good </p><p>offence". </p><p><BR><BR> </p><p>All of us need to translate core strengths to clients, innovate </p><p>applications of our own media products, and prove new ways to add value. </p><p>That's how to lead your way through challenging times." </p><p><BR><BR> </p><p>Steve Marcopoto, president and managing director, Turner Broadcasting </p><p>System Asia-Pacific. </p><p><BR><BR> </p>