NEWS10 June 2022
All MRS websites use cookies to help us improve our services. Any data collected is anonymised. If you continue using this site without accepting cookies you may experience some performance issues. Read about our cookies here.
All MRS websites use cookies to help us improve our services. Any data collected is anonymised. If you continue using this site without accepting cookies you may experience some performance issues. Read about our cookies here.
Insight & Strategy
Impact magazine is a quarterly publication for MRS members. You can access Impact content on this website.
UK – Advertising agencies will inevitably have to increase their prices due to the fallout from rising inflation, said Paul Bainsfair, director-general at the Institute of Practitioners in Advertising (IPA).
In a statement, Bainsfair said that agencies had weathered Brexit and Covid-19, but that when coupled with rising inflation, agencies were no longer able to absorb costs.
Bainsfair warned that the economic situation had therefore made agency fee rises increasingly necessary.
“No agency would take the decision to raise their fees lightly,” he said.
“But with inflation levels at their highest level in 40 years, rising by 9% in the 12 months to April 2022 and potentially hitting 10% in the last three months of this year, such decisions are, unfortunately, inevitable.”
Bainsfair also said that a sector-wide skills shortage was having an impact, as it had led to increases in recruitment fees, wage pressure due to competition to recruit talent, and individuals seeking pay rises to offset the cost-of-living crisis.
Energy costs were also spiralling, as were raw material costs, both of which were also hitting agencies hard and forcing fee increases.
Bainsfair also warned companies not to make cuts to advertising, citing widespread evidence that companies which continue to invest in advertising during a downturn fare better in the long term.
“Agencies are not just creative machines but are also effective commercial powerhouses with expert understanding of consumers, including when and where is best to engage with them,” he said.
“Most crucially, they provide demonstrable evidence of the power and return on investment of their marketing communications activity in driving long-term brand growth for their clients.”
Newsletter
Sign up for the latest news and opinion.
You will be asked to create an account which also gives you free access to premium Impact content.
RealityMine to open centre of excellence for data science https://t.co/B112xzpDG0 #mrx #marketresearch
Consumer confidence hits another record low https://t.co/ylct3h9Wql #mrx #marketresearch
Bilendi sets up shop in the Netherlands https://t.co/rb2CaRJOMt #mrx #marketresearch
The world's leading job site for research and insight
Resources Group
Qual / Quant Insights specialist – International Strategic Insights – Brand/Comms/NPD
£50,000–£60,000 + Excellent Benefits
Resources Group
Quant / Qual Project Manager (Italian speaking) – Healthcare
£25,000–£40,000 + Excellent Benefits
proSapient
Senior Survey Programmer
Competitive Salary + Bonus
Featured company
Town/Country: London
Tel: +44 (0)20 7490 7888
Kudos Research are leading providers of premium quality UK and International Telephone Data-Collection. Specialising in hard to reach B2B and Consumer audiences, we achieve excellent response rates and provide robust, actionable, verbatim-rich data. Methodologies include CATI, . . .
While images of settling into a relaxing sun lounger ️maybe beckoning, take advantage of our easy-to-book,… https://t.co/2zXQsOJ1mI
The post-demographic consumerism trend means segments such age are often outdated, from @trendwatching #TrendSemLON
0 Comments