Advertising world should re-strategise business now to sustain the impending economic blow

Focus on cash flows, attracting new business, sales

NEW DELHI: The ongoing global lockdown prompted by the deadly COVID-19 has pushed the world economy off a cliff, with even the most developed nations staring into an impending dark phase of recession. The Indian economy, which was already dealing with certain setbacks, is also going to be hit severely. The situation is expected to pave the way for a totally new world and how businesses are done in the coming seven to eight months.

Advertising agencies will have to amp up their strategies significantly to deal with the looming uncertainties and work with a fresher perspective, stated Ad-Vice Software and Consulting Inc founder Vincent G Gong, addressing the advertising community over a Zoom conference, organised by the Advertising Club of Bangalore.

During the hour-long session, Gong shared many tips and tricks with the agencies to keep their business afloat, including suggesting them to stick to a concrete business plan, keeping an eye on their own as well as the clients’ finances, and considering sensitivity analysis of their forecasts.

He recommended ten immediate steps to be taken in the next 90 days to prevent a sliding business, including determining early on for how many months they can pay expenses without any revenue and planning their expenses accordingly.

Gogh prompted the agencies to think twice about entering any long-term obligations during these times and prevent touching their line of credit, but should continuously be looking out for new businesses.

He added that agencies should be focusing on sales efforts, and if possible control the payrolls.

While he said that companies should be considering different steps other than a termination to manage the payrolls, he also warned that any employee who is not doing a hundred per cent for the agency should fear a layoff and agencies be prompt in taking decisions related to expenses. He also asked ad firms  to be very transparent with their employees regarding their pays and job security to keep up the employee morale.

Gong's belief is that agencies should not be chasing clients for money as everyone is going through pain. "Keep reminding them that you need to pay your bills, but you need to remember that  it is a partnership that you have with your client," he stated.

His action plan also mentioned an improvement in daily project management systems, with more involvement of employees, generation of better briefs and a close vigil on estimates versus actual costs.

To keep hold of existing clients, he urged the agencies to develop a far better understanding of the clients’ consumers and keep innovating with fresher ideas. He insisted that agencies should be willing to turn small projects into elaborate programmes to keep the clients engaged.

Gogh clarified that the agencies might have to make some difficult decisions in the coming three months, but if they do not swallow the bitter pill now, it will become harder for them to keep the shop running in the future.

Latest Reads
Fastrack x Ananya Panday: The Fit Outs collection of watches

MUMBAI: Fastrack launched its first co-created collection of Watches and Bags for girls with the youth style icon, Ananya Panday. The young girls of today have a fashion repertoire that ranges from a casual, sporty for everyday looks, bling look to make a fashion statement at a party and even an...

MAM Marketing MAM
Xavier PRabhu, PRHUB’s founder is the next President of APAC region for IPREX; will be part of the global board & executive committee in the new role

IPREX, a US$420 million network of communication agencies with 1,600 staff and 110 offices worldwide working across a spectrum of industries and practice disciplines and the third-largest global network of independent PR firms, today announced its new global leadership team. Xavier PRabhu, Founder...

MAM Marketing MAM
Grafdoer recommences production with a brand-new line of Hygienic Touch-less Products

New Delhi : To curb the spread of novel Coronavirus, companies across various sectors are diversifying their inventories with new and innovative products to meet the growing need of consumers. Kitchen and Sanitary-ware brand Grafdoer announced the commencement of its production of new touch-less...

MAM Marketing MAM
Not the right time for brands to go dark; they must continue communication

Brands cannot go dark in these troubled times, says ITW Consulting managing director Bhairav Shanth during a virtual fireside chat with founder, CEO and editor-in-chief Anil Wanvari. According to him.

MAM Marketing MAM
IIFL Finance signs Rohit Sharma as first-ever brand ambassador

MUMBAI: IIFL Finance, one of India’s leading non-banking finance companies, with over Rs 36,000 crore of assets under management, has signed up Indian cricketer Rohit Sharma as its first-ever brand ambassador. IIFL Finance endeavours to stand out for talking straight and being honest with its...

MAM Marketing MAM
Metro Shoes provides relief to workers by donating footwear

Migrant labourers are struggling to reach their hometown amidst the pandemic that has brought the country and its economy to a halt. Many of them have chosen to walk towards their homes. The long miles, blistering heat and inadequate food and water have made their struggle to reach home a lot...

MAM Marketing MAM
HR-Tech startup, iXceed forays into Digital Marketing Services

After making a mark in the HR domain, iXceed – HR-Tech the start-up now expands its portfolio services by offering digital marketing in tandem with the clients’ demands. Marketers—as advocates for consumers in every business—have a critical role to play. Digital Marketing is a major driver for most...

MAM Marketing MAM
Dollar has Akshay Kumar unveil new brand identity on webinar

BENGALURU: In probably what will be the ‘new normal’ as far as product and brand launches are concerned, Indian apparel brand Dollar Industries Ltd (Dollar) unveiled a new brand identity through a webinar. The new brand identity has the word Dollar with and added subscript – ‘Wear the change’ - #...

MAM Marketing MAM
8th Edition of The Edutainment Show Goes Virtual Amidst Lockdown

India’s leading Event IP Company, Event Capital initiative The Edutainment Show has announced its 8th edition online. Edutainment Show Live a media and design education exhibition is set to be held from the 11th June -20th June. The show is a platform to connect young budding and aspiring students...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required