Tag Archives: Public Finances

PR’s been cut but PR is important to handle the cuts

22 Jun

 


David Cameron and George Osborne - the two men behind today's Emergency Budget should be happy at the way it has been positioned

 

The government has been quick to announce it is cutting its PR and communication budget but what is interesting is the PR of the cuts.

The Emergency Budget is set to be announced today, just as promised within 50 days since the election.

The Government believes it is going to have to make severe cuts to get the country’s finances back in order. The government have tested the public with the earlier announcement of cuts of £6bn of cuts. These were merely just the non-controversial start, ID cards and Quangos are not going to upset too many people and they allowed the government a chance to gauge public opinion.

But we are likely to see the true scale of the cuts in a couple of today’s budget and also further cuts likely to come in the Autumn.

Cuts in the public spending are always going to be controversial, so PR has been vital in order to try to position the government favourably.

The focus of the Con-Dem Government’s media activity has been about the economy and specifically about the need for cuts. They are trying to convince the public – and essentially voters – that the cuts are necessary, the cuts are Labour’s fault and the Con-Dem coalition are saving the economy and the country from tougher times in the future.

The first focus of this PR campaign started before the election with the Conservatives attacking Labour about their handling of the economy. But Luckily for the Conservatives a political consensus had formed about the need for cuts, this allowed the message to be accepted by the public.

Then after forming a government the Conservatives attempted to show the public that the tough decisions they will have to make are merely down to Labour. Stories were fed to the media about how bad the economy and public finances were and how it was all down to Labour. Examples of this are Ministers proclaiming black holes in the department’s budget, the Liam Bryne’s ‘No Money Left’ letter, etc. The strategy then moved onto the consequences of not making cuts, for example Nick Clegg claimed it would not be progressive for future generations to pay for our spending. We have seen in interviews and speeches over the past few weeks time after time government ministers telling us tough times lay ahead, severe cuts will have to be made. They have not given the public details but are merely preparing them for the budget. The public now believe cuts are necessary and that severe cuts are going to be made in today’s Emergency Budget.

We have also had leaks about certain aspects of the budget to try to prepare the public for the cuts and tax rises that will be announced later today – for example a rise in VAT is widely anticipated and if it is confirmed today it will not be a shock.

Overall the Conservative’s communication strategy has been good and they way they have positioned today’s budget, its cuts and tax rises has been top-notch

Two-faced Tory marketing mantra

22 Jan

Latest Tory billboard campaign which was
rumoured to have cost the party £500,000

While Euro RSCG London may be getting a bit of a boost from the Tory party at the moment it is safe to say that the industry is going to take a battering if they assume power in the General Election.

George Osborne has said the Conservatives would cut the government’s advertising spend immediately if they are voted into power. He called the current spend ‘poor value for money’ and ‘excessive’. Gordon Brown said he would also cut the government’s marketing spend by a quarter but many have a horrible feeling the Tories want to go much further.

David Cameron echoed the views of his shadow chancellor by saying the current spend was ‘irresponsible’. You would get the impression that the Tories had a clear scepticism of the merits of marketing, PR and advertising from their less than positive comments. So it came as a surprise when Dave revealed that his party would spend the maximum legal limit of £18m on marketing during the upcoming election campaign. They are also expected to spend many more millions on marketing in the run-up to when the election is called.

And of course they have already released a string of high-profile and  expensive campaigns in the past six months or so. You can get an idea how much they are plowing into their campaign from their furious marketing activity and from a string of articles found on marketingmagazine.co.uk (here are just a recent few) – Tories look to recruit General Election brand manager‘, ‘Labour campaign funding on the slide as Tories launch poster offensive’ , ‘Conservative Party poster accuses Labour of class war’, ‘Conservative Party target younger voters with Spotify ad campaign’.

Lucky for advertisers there’s an election next year

9 Oct
The government has just lauched a new £6m climate change campaign - are we likely to see increased ad activity in the run up to the 2010 General Election?

The government has just launched a £6m climate change campaign - will there be a blitz of new advertising campaigns in 2010?

As the government looks to reign in its spending there’s growing speculation that the advertising budget may take a hit in the coming months. It would be a quick way to cut public spending and it wouldn’t cause too much grumbling amongst the masses.

Companies have cut back on their marketing expenditure during the recession but the government has done the opposite. Government ad spend during the previous financial year was a record £211m, up 35% on the year before. This has helped someway to plug the gap that has been left by a shrinking of commercial advertising spend. Now of course the advertising and media industries must be terrified that if the government cuts back before we are out of the recession they are going to be in trouble.

However let’s no forget there is going to be an election next year and no matter how long Gordon Brown wishes he could put it off he has to dissolve Parliament by May at the latest. There won’t just be the extra ad spend from the political parties, critics of the government and various media analysts reckon it is highly likely the Labour Government through the Central Office of Information (COI) will be spending huge amounts on advertising in the months that lead up to polling day.

Lucky advertisers

There has been a recent trend that government ad spend shot up in the run up to a General Election. So it may be lucky for advertisers and the media there will be a poll next year.

Gov ad spend

Accusations have been thrown at the current government of increasing ad spend in the run up to the past two elections, in particular the last three months before the polls open.  Have a look at the lovely graph I made, the orange bars show COI’s advertising spend in the financial year before the elections held in 2001 and 2005, both of which were held in May.

Figures show in the run up to the 2001 General Election advertising spend was £60 over three months. This was double what it was the previous year and almost half of the year’s entire budget. £16m was spent in January 2001, this rose to £16.4m in February and ad spend ballooned to £30.2m by March.

And amongst the 15 campaigns that were launched was a £3m campaign targeting benefit fraud. Why not have a watch yourself of some vintage government advertising…
Fair enough you might say, we have to target those dam benefit cheats and this advert may put the frightners on them. However the government was accused of not even targeting the campaign at those likely to commit benefit fraud. Panorama used a couple of media analysts to show that press ad expenditure was almost all in the ‘quality press’. Titles such as The Times, The Telegraph were used while The Sun, The Mirror and The Star were largely ignored. I’m not in trying to flare up a class war, but those likely to commit benefit fraud would probably favour the tabloids. So the message was accused of being targeted at those key middle class voters, the ones who’s support would win a second term for Labour.

Reassuring voters

Opponents have accused the government of trying to sneaking party propaganda into publicly funded ad campaigns. It’s not a new argument, Tony Blair levelled the accusation at the Tories in the build up to the 1987 election. But are sexual health, binge drinking, drugs and knife crime ads merely launched to reassure worried voters the administration is taking action on issues of public concern? Are they about reassuring the middle classes or are they intended to help solve the problem? Take the government’s new climate change campaign (picture at top) is this meant to help persuade people Global Warming is a serious issue or is it meant to reassure the green vote and persuade skeptics that the government is taking climate change seriously? 

There are two arguments that critics throw at the government. The first is that government launch campaigns (like the benefit fraud spots) to reassure skeptical voters and not really to try and tackle the problem. However surely this cannot be said of the majority of government advertising campaigns, which are launched to try and tackle serious problems. Adverts are needed for public sector recruitment, to inform of new or changing laws or change people’s opinions about serious social issues. Adverts launched by the NHS about spotting strokes or quitting smoking cannot be viewed as political and are genuine attempts to help solve serious problems. 

However the other and perhaps more damaging criticism is that the government jacks up it spend in the year preceding an election in the hope that a blitz of advertising will create the impression of furious government activity, in doing so persuade sceptical voters the government is working hard and tackling sensitive issues that are of concern.

Ad blitz in 2010?

Of course if advertising spend does jump again – particularly after last year’s record spend – it will lead to huge criticism of Gordon Brown and his government, especially as the public debt is at a record level. But with an election being held in either May or June the polls will have been closed for some time before the COI publishes it annual report in July, therefore the government may not have to worry too much about the backlash of ramping up its ad spend from now until the election. But an indicator that the government is beefing up its spend will be obvious to all. First the award of accounts after a number of pitches and then the inevitable bombardment of campaigns that will hit our TVs, magazines, radios, billboards, bus stops, buses and newspapers in early 2010.

Mark Lund, the chief executive of COI, recently told Campaign: “Government campaigns can help save lives and save money.” Well Gordon Brown may be hoping a government advertising blitz in the build up to the 2010 Election will help save Labour MPs and save his government.

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