Archive for June, 2011

Mind the generation gap

June 20, 2011

I recently heard Hotwire advisory board member, Charles Davis of the CEBR (centre for economics and business research) speak on the topic of consumer austerity, and I was pleased to hear his message that it’s not all doom and gloom in the consumer market.  There is plenty of good news out there – it just gets buried underneath the bad.

Consumer austerity is a particularly relevant topic in the world of public relations; according to our research performed with the Holmes Report 32% of communications professionals have seen their budgets stay static this year, with 18% seeing a drop.  Alongside this, almost a quarter of respondents stated that the money conscious approach being adopted by both consumers and businesses has affected their campaigns,  forcing them to become more innovative in order to make them work harder and penetrate a less receptive and more careful market.      

As a PR agency we think we understand how recession is affecting today’s markets, but are we aware of how it will affect future generations of consumers?  According to an article by MediaCom, 71% of junior school children already understand the term ‘credit crunch.’  Moreover, many parents are using the recession as an opportunity to educate their children to be more financially aware.

This reaction to the economic crisis could lead to an interesting generation of financially savvy shoppers.  And though many PR professionals and marketers assume that money-saving behaviours will become obsolete on exiting the recession, with this educational approach our successors are likely to learn from our mistakes.  Perhaps we in turn will have to learn to adapt our campaigns to suit a more cautious and financially aware audience.


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