IPA Bellwether Q2 2025: Industry reactions

“Upwards revisions in sales promotions and direct marketing point to how brands are approaching greater consumer choice in the face of lower consumer confidence and intentionally curbed spending.

“In a retail context, the challenge is how to remain relevant and compete against the increasing number of brands and products entering the market across in-store, online and on social media channels.

“Direct marketing has proven to be an effective way to gain consumers’ attention in the past, but the sheer volume of brands fighting for the same spaces is pushing up CPA, bringing the ultimate value into question.

“In this market, brands must curate the clutter and create strategic friction to increase consideration and make the increased spend worthwhile.

“While it is important to avoid devaluing the brand in terms of quality and sustainability through a race to the bottom on price, offers and promotions can also be an effective way to drive a short-term increase in sales.

“However, brands cannot afford to focus solely on immediate gains at the expense of their long-term sales, marketing strategies, and profitability.

“Both direct marketing and sales promotions should be deployed as part of wider brand building campaigns and go to market plans that speak to a brand’s target audience.

“Merchandising and customer experience will also be critical for generating long-term loyalty and creating category leaders.”

To read the published comment by Dan Todaro, Gekko Group CEO, please visit Mediashotz

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