Media urged to support PR companies as fiscal crisis slows down market
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.”
She added following the real estate boom, the year 2008 was buoyant for both the sectors– advertising and PR in the region but the economic catastrophe demands PR sector and the media to join forces to contribute in keeping the market sentiment high and filter benefits down to the working class. The fiscal troubles of the regional markets can be resolved by prudent management and though economic indicators are not very promising, success of the market will ultimately depend on confidence of investors and users to sustain its viability, she maintained.
Meanwhile, The Idea Agency has gained the trust of many new international brands this year who have asked the agency to handle their PR campaigns and media relations. The agency’s portfolio of clients for the year 2009 includes the Damas Group including corporate in-house brands; international jewellery brands such as Stephan Hafner, Carrera Y Carrera, Roberto Coin, Pasquale Pruni, Mikimoto, Calgaro and many others; high-end international watch brands such as Jaquet Droz, Parmigiani, Chronoswiss, Sarcar, and Perrelet etc.; UAE Trading including corporate and international fashion brands such as Ermenegildo Zegna, Agnona, Faconnable, Zimmerli, Givenchy Fashion and others; World Gold Council including corporate communications and studies and statistics related to gold consumption report in the UAE and other GCC countries; Al Jaber Optical including corporate and high-end international brands of optical wear and fashion eyewear such as Bvlgari, Versace, Ray-Ban, Vogue and many others; Al Bustan Centre & Residence: all corporate communications; Enjoy Bijoux which includes limited edition watch brand, HAUTLENCE; and Buben & Zorweg, makers of luxury watch winders.
The agency believes that with this rich portfolio of multinational brands, they can contribute many useful stories for the prestigious local and regional publications.
