Of all the half-baked ideas…
The Idea Agency causes a stink.
March 4, 2009 3:39 by Dana El Baltaji
A few days ago, we received a press release from The Idea Agency asking the media to “extend greater support to advertisers.” Below is an excerpt of the press release:
Rita Boustany, Managing Partner of The Idea Agency, has urged media to extend greater support to advertisers in terms of PR to help big groups resist declining businesses in the region as deep financial crisis has resulted in an overall slowdown.
She said: “During the current year we are witnessing a higher demand for PR services by large trade groups. As consumer confidence has been eroded to a record low, the advertising budgets have contracted to 20% – 40% or more by some international brands. The advertising budgets are also being cut as profits are low. Ads posted on newspapers and magazines and TV commercials have sharply fallen. Even outdoor advertisements have dropped. But amid this chaos large groups of companies and high-end brands have increased PR budgets as an alternative from last year to fill this void and at the same time get the economy going.
“As a major casualty of fiscal crunch, most of the advertising firms will face a big challenge ahead due to dwindling corporate advertising budgets but have shown the resolve to stay competitive in a bid to wriggle out of the fallout of the financial crisis. According to a recent study the advertisement sector recorded a 20 per cent growth rate over the last three years and so would be able to persist during these hard times. However, as all the indicators are pointing toward a slowdown or recession, as a full service agency we request the media to extend their full fledged help to the PR sector to restore confidence in the market.”
The irony, of course, is that the media industry is suffering precisely because of the reasons Boustany stated in the press release. Without advertising money, publications cannot survive, and judging by what we can know about the market, this isn’t a time for charity.
We’re afraid advertisers will have to grin and bear it like the rest of us.