Articles are flowing about how big companies are cutting away at their budgets, if they are not cutting then they are renegotiating costs with their agencies, here and here...
The article on AdAge explains how companies are also taking a look at consolidating:
PepsiCo last week reported a 43% drop in fourth-quarter profits on write-downs and restructuring and a 9% drop in full-year profits. During Coca-Cola's fourth-quarter earnings call on Feb. 12, CEO Muhtar Kent said the marketer has slashed its agency roster by more than half. "We have consolidated, " he said. "Agency numbers have gone down by more than half, and I think we have driven a lot of efficiencies in our marketing, our market-research costs."
The survey in the above emarketer article indicates cuts are increasing in the various marketing and advertising areas.
The survey also demonstrates it is not always about cuts in spending but also about reallocation of Ad spending. We are seeing during this time of recession that ROI and the ability to provide hard data about ROI is important. There is a distinct move of money from TV to Digital and big companies are putting their money behind the idea that there is a better return on investment in digital media.
Being more efficient with money that is available to spend on advertising is therefore very important. You see so many catch-up campaigns where companies are just trying to better their competitor without looking about being innovating and really thinking about what will allow them to provide interesting and hopefully even innovative services to their customers. There is great article from the creator of the subservient 'chicken campaign', not really innovative or providing an interesting service but as memorable ads go this is right up there with the effective few.
But even though it is cold outside, paying attention to clients needs does pay off and companies that are doing a good job in this arena, like Google, are getting top scores.
“Since new customers are harder to come by in an economic downturn, firms need to pay even more attention to building loyalty with their most important customers,†wrote Bruce Temkin, author of Customer Experience Correlates to Loyalty.
Companies that have a good brand, that people will trust and who also advertise efficiently are highly likely to come out of this recession far better than the others...
Note: there is a new article on emarketer (20 March 09) concerning a Myers Publishing survey providing a new view on how ad spending will evolve.
I question the reliability and accuracy of Generative AI (GenAI) in enterprise scenarios, particularly when faced with adversarial questions, highlighting that current Large Language Models (LLMs) may be data-rich but lack in reasoning and causality. I would call for a more balanced approach to AI adoption in cases of assisting users, requiring supervision, and the need for better LLM models that can be trusted, learn, and reason.
I discuss my experience with chatbots, contrasting older rules-based systems with newer GenAI (General Artificial Intelligence) chatbots. We cannot dismiss the creative capabilities of GenAI-based chatbots, but these systems lack reliability, especially in customer-facing applications, and improvements in the way AI is structured could lead to a "software renaissance," potentially reducing society's technical debt.
The article discusses the contrasting debate on how AI safety is and should be managed, its impact on technical debt, and its societal implications.
It notes the Center for AI Safety's call for a worldwide focus on the risks of AI, and Meredith Whittaker's criticism that such warnings preserve the status quo, strengthening tech giants' dominance. The piece also highlights AI's potential to decrease societal and technical debt by making software production cheaper, simpler, and resulting in far more innovation. It provides examples of cost-effective open-source models that perform well and emphasizes the rapid pace of AI innovation. Last, the article emphasises the need for adaptive legislation to match the pace of AI innovation, empowering suitable government entities for oversight, defining appropriate scopes for legislation and regulation, addressing ethical issues and biases in AI, and promoting public engagement in AI regulatory decisions.
Japan has made its ruling on the situation between Content creators and Businesses. Japanese companies that use AI have the freedom to use content for training purposes without the burden of copyright laws. This news about the copyright laws in Japan reported over at Technomancers is seen as Businesses: 1 / Content Creators: 0 The […]