2010 has been interesting for a number of political, sporting and other factors. However, Alchemis is focused on advertising and marketing and the Guardian article (July 12th) was a great sanity check as it mirrors our experiences over the first half of 2010.

The article focuses on the recent Bellwether report, published by the Institute of Practitioners in Advertising. It has found that one in five companies cut annual advertising spend between April and June. This compares with 15% that said spend was increased.

It was as recent as Quarter One when the report announced that more UK companies raised their marketing budgets than cut them for the first time in two-and-a-half years.

Advertising took a knock, although big events such as the World Cup meant the dip in this area was not as significant as it could have been. Sales promotion was hit very hard, with the report recording “the third fastest downgrade to spending on the sales promotion sector in the Bellwether survey’s history”

It is not all doom and gloom. For those in the digital sector spend went up, although at a very slow rate. Internet advertising continued to grow, with social media remaining a major focus. With ROI crucial, digital media’s measurability is very appealing to company bean counters.

Despite all of this, as a new business agency, we (and our clients) should latch onto Rory Sutherland’s (IPA President) comments – “Although this indicates a less optimistic picture than previously thought for this year, marketing spend is still set to increase.”

In fact, we are optimistic at Alchemis. As I mention above, our experiences have mirrored the positive first quarter followed by a slower second quarter with the digital sector remaining the growth area. We, and our clients, entered 2010 with a bang. New briefs were plentiful and outstanding proposals suddenly got the green light. We had a record quarter for clients converting business in all disciplines. The feeling from the market and our clients felt positive. Companies and marketing departments had stuck two fingers up to the recession and the combined efforts of Alchemis and our clients over the last hard 12 months were paying dividends.

Quarter Two did see a dip, although in fact, there were and are still lots of opportunities out there for small to medium sized agencies and results from the second quarter still smashed the figures from 2009. I am not an economist, but there is no doubt in my mind that the uncertainty both before and following the election was a factor. Those are out of the way now and the one thing that has not waned is the number of marketing professionals who have wanted to meet new agencies. We have set record numbers of meetings in May and June. If times are tough, you need to look at quality, cost-effective solutions. I’ve waxed lyrical about it before, but our client base of small to medium sized agencies offer exactly that and the market is really open to approaches from them.

There is still much uncertainty out there and whilst commentators will have their opinion, what happens next is anyone’s guess. However, we know that you will need to be prepared for both a down or upturn. If your current clients cut their budgets, you need to have irons in the fire with new business. If, as we all hope, the second quarter dip is short lived, you want to make sure that you have got the introductions out of the way before those budgets are released and allocated.

The Lib-Cons will be there for a while yet, Germany has beaten us again, but who knows what the rest of 2010 will bring? All I know is that everyone in agency land needs to be prepared for any eventuality.

There were reports in the press recently that a Labour leaflet campaign was targeting cancer sufferers with a message that their lives could be at risk if a Tory government was to come into power using the strap line “are the Tories a change you can afford?”

Labour claims that they used publicly available social demographic data and the data management company Experian confirmed that both Labour and the Conservatives use its Mosaic database, which divides voters into 67 groups and identifies likely cancer patients using anonymised hospital statistics, including postcodes and the diagnoses of patients.

This throws up interesting questions about what customer information a brand should use in tailoring their communications.

The holy grail of all customer marketing is surely to get to a point where brands can treat their customers as individuals but if they are seen to be taking advantage of someone’s disadvantages to promote a product or service then this risks alienating the customer and potentially turning into a PR nightmare.

As a Business Development Manager I have the advantage of being able to react to information I receive during a conversation and amend my communications accordingly.

When I am making new business calls to marketing decision makers part of my job is to identify ‘pain points’ and highlight requirements that are not currently adequately provided by their internal resources or current suppliers. This gives me a great reason for them to meet my client. However I’m always very aware that identifying pain points is one thing, but overstating them is likely to turn the prospect off.

Quite often the questions I ask are designed to raise these areas in the prospect’s mind but sometimes ‘in their mind’ is enough and these ‘problems’ remain unspoken. If, in their mind they can see a problem that is currently unsolved and match that with a potential solution that my client has expertise in then I’m more than half way there.

In my experience there is such a thing as overselling your benefits and if that is on the back of excessively highlighting a prospective client’s (or for that matter voter’s) problems then you’re bound to risk appearing mercenary or as Phyllis Delik, 80, who received one of Labours leaflets described it “callous”.

What do you think the limit should be on marketers using sensitive data to target their customers, if any?

Of all the electioneering and posturing that’s going on, very few articles catch my eye and make me want to read on – this one did.

This particular article resonated for two key reasons:

Firstly, I run a business development agency helping marketing agencies find new business and am conscious of the fact that one day I may be invited to help an agency that specialises in marketing to kids, and as such, will have to make a decision as to whether we want to work with them.

Secondly, I’m the grandmother of an 18 month old and will no doubt be facing the problems associated with marketing to kids as she gets older and more verbal in her demands to keep up with all her classmates (my own son was told ‘no’ but I’m not sure that cuts it any more in this greed driven world)

Anyway, I’m pleased that to read that a website that will enable parents to complain about sexualised products and marketing aimed at children will go ahead whether Labour or the Conservatives win the general election.

I don’t care whose idea it was or who put it in their manifesto first, I’m just glad that both parties are sensible enough to see value in the notion. I also hope that the industry is consulted.

Here’s a prime example of why we need to prioritise initiatives like this – Primark is forced to withdraw its padded bikini tops for 7 year girls - need I say more?

Would be good to hear your views on this………