What will be the biggest change to impact global media planning in 2023?

Media planning is a process where marketers and advertisers determine how, when and where the consumer is exposed to a certain advertising message (Marketing Evolution, 2019). Global media planning is essentially this but on a global scale.

Global media planning is constantly being impacted by correct affairs, and political and social issues from around the world. There are many ways in which global media planning will be impacted in 2023 but the topic this post will be focusing on is the cost-of-living crisis. This will arguably be the biggest change to impact global media planning due to the sheer volume of people it’s affecting.

Retail spend will decline

Brands are going to have to plan and prepare for a decline in retail spending. With the cost of living on the rise, people simply will have less money to spend on luxuries as the necessities will take priority. They will have an important decision to make in when planning in terms of retail pricing. Should they decrease their prices to encourage spending, keep them the same and hope loyal customers stay, or increase their prices to be able to meet their costs but risk losing customers (Hamill, 2022).

Using Emotion in global media planning could play a big part in where and how consumers spend money. People will be a lot more hesitant on where they spend their money, they will want it to be worthwhile and meaningful. If a brand can create an emotional relationship with the consumer in their media, they will be more inclined to give them their money. Havas Media Group found that 74% of people will prioritise brands that ‘stay true to their word, and provide quality products and services’ (Glenday, 2022). Consumers may want brands to speak about the cost-of-living crisis to show understanding. Low-income households will be the most effected during the crisis, therefore these groups may expect brands to engage with these social issues, building an emotional relationship (Castle, 2022).

Budgets will be cut

The cost-of-living crisis will also influence budgets, meaning not only will spending have to be cut when planning, but also staff numbers may have to be reduced. Small businesses will have a more difficult time surviving the cost-of-living crisis as they have less expendable budget. Small businesses are more likely to have to raise prices and lay off staff. The British Chambers of Commerce found that 62% of businesses expect their prices to rise in a short period of time (Young, 2022). With the increase in prices, increase in Utility/Facility costs and decrease in retail spend, businesses are going to suffer. Brands will need to factor this into their global media planning, how global can they go, how can they continue to encourage spending, how can they meet their own costs and maintain profit margins?

Many brands are already planning on cutting their media spending down to subsidise increasing costs. This could have long-term consequences as it could mean a loss in customers and therefore a loss in revenue. Brands have opted for this to avoid increasing retail prices, as they fear this will have a bigger impact on customer retention (Benady, 2022). For global media planning to be successful during this crisis brands need to consider:

• Are they focusing on what is important to the brand and the consumer? Inflation is affecting everybody even their competitors, be understanding and considerate.

• Are they distributing costs effectively, where could they you cut costs to make the least damage to the brand? Weigh up all the options, test a few out if they are able, do what is best for the company as well as their consumers.

• Are they being transparent and respectful with consumers about what is happening? Consumers will see increases in prices, be open and honest (Peate, 2022).

The cost-of-living crisis will influence everyone and is likely to be the biggest impact on global media planning in 2023. Brands need to consider what is most important to them during this time and in their planning. They need to focus on quality rather than quantity moving forward. How can they stand out, how can they continue to build consumer relationships and how can they continue to make a profit? Brands must now include these factors within their global media planning to create a successful marketing campaign.

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References

Benady, D. (2022). Inflation forces brands to rethink their advertising spending. [online] Raconteur. Available at: https://www.raconteur.net/marketing/inflation-brands-rethink-ad-spending/.

Castle (2022). Leading with purpose: How brands can navigate the cost-of-living crisis. [online] Castle. Available at: https://castle.co.uk/featured/navigate-the-cost-of-living-crisis/ [Accessed 10 Jul. 2022].

Glenday, J. (2022). 59% of Brits are budgeting for the cost-of-living crisis. [online] The Drum. Available at: https://www.thedrum.com/news/2022/04/25/59-brits-are-budgeting-the-cost-living-crisis [Accessed 10 Jul. 2022].

Hamill, A. (2022). The cost-of-living crunch: what it means for marketing, and what to do next | WARC. [online] origin.warc.com. Available at: https://www.warc.com/newsandopinion/opinion/the-cost-of-living-crunch-what-it-means-for-marketing-and-what-to-do-next/en-gb/5644.

Marketing Evolution (2019). What is Media Planning? | Marketing Evolution. [online] Marketingevolution.com. Available at: https://www.marketingevolution.com/marketing-essentials/media-planning.

Peate, J. (2022). How Should Marketers Navigate the UK’s Cost of Living Crisis? | LBBOnline. [online] www.lbbonline.com. Available at: https://www.lbbonline.com/news/how-should-marketers-navigate-the-uks-cost-of-living-crisis [Accessed 10 Jul. 2022].

Young, K. (2022). ‘The rising costs of living look likely to place significant challenges on our business’. [online] www.aop.org.uk. Available at: https://www.aop.org.uk/ot/industry/high-street/2022/04/12/the-rising-costs-of-living-look-likely-to-place-significant-challenges-on-our-business [Accessed 10 Jul. 2022].