Bob Jeffrey, Sky News Online

Tuesday, October 21, 2008

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Big Beast Of US Ad-Land On Crisis, By James Silver.

Few industries are likely to emerge unscathed from the global economic crisis and the advertising industry is predicted to be hit harder than most. As recession takes hold, businesses are slashing their marketing budgets and advertising firms are braced for leaner times.

"In general things are going to be really difficult and really challenging," says Bob Jeffrey, who as worldwide CEO and chairman of JWT, is one of the 'big beasts' of American ad-land.

"I think consumers are going to be in a much more rational mindset about what they purchase. So it's going to be really difficult, I just don't see how it can't be."

Talking to Sky News Online in a Knightsbridge hotel, the 54-year-old silver-haired adman from Rhode Island continues: "A lot of what's going on this year, was already locked and loaded (before the crisis), but I can already see (the effect) in terms of what's happening.

"We're right in the middle of looking at the budgets for next year and I can see clients are going to be pulling back.

"JWT has a very big geographic spread. We have huge business in mature markets like North America, but we're also really strong in developing markets in places like Asia. And now, even in those markets, I see softness, which we haven't seen for a long time."

In the US in particular, the shockwaves caused by the turbulence on Wall Street and the failure of several high profile financial institutions are still being felt, says Mr Jeffrey, whose firm's clients include Diageo, Ford, HSBC and Microsoft.

"One big trend is humility. I think people in the US are feeling very humbled at the moment. We've been on this buying binge for the last several years. People were living on credit. Even after 9/11, what did we do? We told Americans to go shop.

"There's a real reckoning and humility now. Even for people who have money.

Does he buy into the much-touted theory that the US and Western Europe are entering an Age of Austerity?

"I don't see how we're going to escape that, yes," he replies. "People are so freaked out at the moment.

"In New York - when the bailout didn't work and the market crashed - many people said it was like 9/11 again. There was panic. So how can that not influence consumer behaviour?"

The message advertisers need to project right now is one of "confidence", explains Mr Jeffrey.

He points to a campaign JWT is running for retail giant Macys. "Being confident means knowing who you are and why you have that emotional relationship with your consumer.
"Macys has a star as part of its logo and we're tapping into all the stars that Macys has in its portfolio, like Martha Stewart, Tommy Hilfiger and Kenneth Cole."

Tough times can also provide marketers with the chance to push the boundaries of creativity, particularly when it comes to digital advertising, he adds.

"I'm an optimist and my attitude is that every crisis presents an opportunity. In this situation, what we should be doing is innovating, because innovation can give a client a competitive advantage."

What clients expect from their agencies, as the recession bites, will become clear in two-to-three months, he says, but it is certain that they will want "more from less".

"I've always said that sometimes big, big budgets are an albatross because they lead people to very conventional advertising solutions.

"I think a lot of times, when you have a smaller budget to work with you are forced to be more imaginative, because you just have to be. You don't have the luxury of throwing money at something."

He adds: "Not every client is going to have the courage or ability to spend behind their business in a recession.

"But I really believe that you have a huge advantage - from a brand point of view - if you're out there, experimenting and are the first to do something really distinctive."

Posted by James Silver - On Tuesday, October 21, 2008

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