A new budgeting tool from ITV will help advertisers navigate the impact of the current economic situation.
The web-based interface is the work of the broadcaster’s commercial innovations wing AdLabs and uses data to help calculate the impact of different advertising budget scenarios.
The ‘Recovery Budget Planner’, designed by consultancy Magic Numbers, uses economic projections to create forecasts about market share, sales and profit. The aim is to help get finance directors on board by showcasing how advertising can build growth following a tense economic climate.
Prior to the Covid-19 pandemic the World Economic Forum forecast that the advertising industry would grow to $865 billion US dollars by 2024. But advertising was hit hard during the health crisis and the impact of the Ukraine War has also hit consumers hard, which has had a direct impact on advertisers’ budgets.
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“This tool exists to help you decide how your specific business should respond to the changing outside world. It uses numbers that you probably already have to hand and is easy to navigate,” said Magic Numbers founder and managing director Dr Grace Kite.
With information on current spend, as well as market share and the option to input profit margin, the tool can balance the numbers against a sector specific recession forecast and make an estimation about the number of years it will take a business to return to pre-recession market share.
“Many marketers struggle to make a simple case for investment using existing academic-style studies so the Recovery Budget Planner makes the theory actionable and easy to apply to a brand’s specific situation,” said ITV director of client strategy and planning Kate Waters.
