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Media Intelligence : 2009 - 2010
For information on your sector go to www.mediabiznet.com.au Tax incentive call for advertisers Scott McClellan Executive Director, Australian Association of National Advertisers What are the biggest challenges facing advertisers and the AANA at the moment? Amid widespread fears of a deep and prolonged recession bearing down on us, there is a small window of opportunity for the advertising industry to help fi re up the economy. But events are moving quickly. By the end of 2010, around one in ten Australians could be unemployed and the dire conditions affecting North America, Europe and parts of Asia could be engulfi ng us. The jobless rate is still around 5 per cent. Interest rates are at a 45-year low and prices of some key items are down. Unlike previous recessions, consumers still have money in their pockets, padded by the stimulatory packages delivered by Federal Government. People are still buying, they have simply shifted their spending from big ticket items to value products that signal a cocooning mentality: mince, seeds and safes. Nevertheless in February retail sales had their steepest fall in more than eight years. Clearly what’s holding consumers back from spending is poor confi dence, fueled by a widespread uncertainty among economists about the outcome of the global fi nancial crisis. How are advertisers being aff ected by the economic downturn? As consumer confi dence plunges, business is responding by slashing critical areas of investment such as advertising, generally signalling its malaise to the market and feeding into the downward economic spiral. As the economy worsens, consumer confi dence can only deteriorate. – this is where advertising can play a signifi cant role. The connection between advertising expenditure and economic growth is well established. Advertising has the ability to restore confi dence and drive economic activity. It boosts consumption and stimulates competition, accelerates innovation and converts research and development into profi ts. Overall, it has a stimulatory effect that fl ows through to manufacturing, transport, retailing and jobs, all of which foster a dynamic economy. What are your objectives going forward at the AANA? AANA is leading an initiative by the advertising, marketing and media industries to build the case for an incentive to help businesses, especially small to medium sized ones, restore their adspend. If companies can be encouraged to maintain advertising spend, or better still increase it, the stimulus on consumer demand could be enough to save the economy from being dragged down by the global slowdown. A tax incentive linked to a commitment to maintain or increase adspend would be a strong incentive for advertisers, at little cost and for little effort, by allowing companies to count advertising and marketing communications expenditure at a higher rate than other business expenses on their tax returns. In return, the Government would gain from taxes paid by advertisers, the media and consumers. What else do media buyers and planners need to know about AANA? AANA constantly monitors the media landscape from an advertiser’s viewpoint, pursuing the interests of its members wherever and whenever opportunities arise. It’s a duty the AANA is determined to continue into an increasingly unpredictable media future, to ensure its members are kept ahead of the changing opportunities for getting their messages across most effectively and effi ciently. mediabi net FIND THE RIGHT MEDIA TO FIND THE RIGHT MEDIA TO Incorporates comprehensive databases for the following: site for the media and marketing industries .com.au The networking, search and information Z TARGET YOUR MARKET TARGET YOUR MARKET • Media Services • Marketing Services • Publishers • Publications • Television • Digital • Radio • Out of Home • Industry Associations • Research >> FREE >> FAST >> NO SIGN-UP >> NO PASSWORD • Media Agencies • Events / Exhibitions • Media Glossary • News / Archives / Links • And more comprehensive contact details with links to advertising rates and more for more details call 02 9327 3876 MEDIA Trends + Strategy 16 p11-15_stateOfPlay.indd 15 p11-15_stateOfPlay.indd 15 3/7/09 11:51:02 AM 3/7/09 11:51:02 AM NEW NEW IT’S IT’S
MT Resource 2010