Strip away the prospect of winning a Lion or a Pencil, the opportunity to schmooze clients and the chance to hear media bigwigs reflect on the state of the industry, and international award shows are just one big spendfest.
And while most agencies will budget for the myriad of award shows they enter, a tightening of the belt this year is likely to impact on the number of shows entered, the number of works submitted and the number of agency staff given all-expenses paid trips overseas.
As the Cannes Lions organisers issued their call for entries in the 2009 International Advertising Festival, B&T surveyed Australasia’s top creative agencies to gauge their awards plans this year.
In light of budget cuts and the general downturn in the advertising sector, will the Aussie and Kiwi representation at this year’s Cannes Lions top or fall short of last year’s numbers?
Amanda Benfell, public relations and press manager for the 2009 Cannes Lions, says it is too early to predict delegate or entry numbers. “But what we are hearing from the market is that while agencies are cutting back on many lesser awards, Cannes is the most important global event and winning at Cannes is still hugely important for agencies and clients,”she adds.
Last year, Australian agencies submitted 822 entries, up from 626 in 2007, and sent 180 registered delegates, 30 more than in the previous year. New Zealand agencies made 376 submissions in 2008 and sent 40 delegates.
Ben Coulson, executive creative director at George Patterson Y&R Melbourne, says his agency will reduce the number of people it sends to Cannes from four (last year) to two, adding it is the only international award show staff will attend.
“If we were to win a D&AD Pencil, someone from the London office can stand up and wave.”
B&T’s survey has revealed that while agencies are prioritising Cannes, touting it as “the most pre-eminent award” and “most valuable”, they will be scrutinising airfares and hotel costs.
“The current exchange rate compared to 12 months ago adds another 20% to the total cost, and then there’s the issue of expensive airfares that Australian and New Zealand agencies face,” explains Garth Agius, group director of marketing, advertising and integration for News Limited, the Australian representatives for Cannes.
Rob Belgiovane, founding partner and executive creative director at BWM, adds that the cost of award entries and travel expenses are some of the easiest budget cuts to make. “I don’t think there are going to be many agencies with an appetite to spend $30,000 to $40,000 to send staff to Cannes,” he says. “Although I do believe it’s probably one of the most critical years to attend something like Cannes because more than ever you’re going to need a creative edge.”
Stephen Pearson, group chief executive at Lowe, which sent four staff to Cannes last year, says he plans to reduce that number by half. “I’m sure all agencies will be applying the same closer scrutiny towards awards based on the economy and the need to be more fiscally prudent, or at least appearing to be fiscally prudent,” he says.
Whybin\TBWA Sydney creative head Gary Horner attended as a judge last year with Sydney managing director Paul Bradbury. While they plan to enter Cannes and other international award shows this year, they are undecided on numbers.
At DDB, national creative director Matt Eastwood reports plans for budget cuts. “We’re definitely cutting our awards budget and probably won’t be sending people to Cannes this year, even if we find out we’ve won a Gold Lion.”
Independent Perth-based agency 303 is bucking the trend, planning to increase the number of delegates at Cannes from three last year to “at least five, probably more,” says managing director Alan Taylor, though he adds: “The prospect of a tougher financial year may change the type of hotel we stay in, or where we eat, but it won’t make a difference to us going.”
BWM, which sent one person to Cannes last year and Leo Burnett, which sent two, both intend to send the same number of delegates this year. Last year BMF sent four delegates, M&C Saatchi two and JWT New Zealand one, but are yet to decide on this year’s numbers.
M&C Saatchi Sydney executive creative director, Ben Welsh, said the agency is likely to base the number of people they send on whether it wins any awards.
“The cost of sending people to Cannes is a lot but we like to reward winners with a trip,” he says.
Clemenger BBDO Melbourne managing director Peter Biggs says the agency was fortunate enough to have two people go to Cannes for free last year after winning a radio Gold Siren but is yet to make a decision on this year’s attendees. “I know a number of worldwide agency networks are cutting back on numbers at Cannes, but from our point of view it simply depends on the work,” he says.
Submitting work also comes at a high cost to agencies and varies from category to category.
An entry in the coveted Titanium and Integrated Lions category will set agencies back about $A2300 ($NZ2921) for a single entry, while the film category is priced at $1240 per entry, and the new PR category at $A760. This excludes the cost of registration; with a seven-day pass setting an agency back at least $A4350, as well as flights, accommodation and food.
Reducing the number of entries for Cannes is the main cost-cutting measure being employed by many agencies this year. While all agencies surveyed indicated they would enter the same number of international awards as last year – with Gunn Report-ranked awards such as Clio, D&AD, One Show and New York Festivals at the top of the list – the number of entries and standard of work will be more closely scrutinised.
DDB’s Eastwood, whose agency topped the outdoor and press shortlists at Cannes last year, offers this thought to agencies considering hope-for-the-best entries: “If I was in an agency that hadn’t had the best year (creatively) I’d rather spend money on making sure I didn’t have to make employees redundant than spend money on entering awards.”
GPY&R is in the middle of a complete overhaul of its submissions process. The process of entering international awards is being centralised through the use of a website where all agencies in the network submit work and the best are chosen for entry. “There isn’t enough money to go shotgun blasting any number of entries into these shows,” says GPY&R’s Coulson, who adds the agency would never exceed its quota of three to four entries for Cannes. “Our thinking at the moment is that we need to be frugal and not get it wrong.” He adds that the economic downturn will prevent agencies from blatant entry bombing. “There are a lot of stories of particular agencies blanket-bombing award shows with thousands of dollars worth of entries in each category. In a good year you’ll dominate because the one thing will win 20 times, but these days how do you justify it?”
Belgiovane says that while BWM aims to submit the same amount of work this year as last year – adding the agency has always been conservative with entries– he believes a lot less work will be entered across the industry. “People will still enter Cannes, but I just think they will be a lot more ruthless about what really has a chance at winning rather than entering pipe dreams,” he says.
BMF’s creative director Warren Brown admits we could see fewer, but more high quality work this year along with less scam ads. “No one will be able to justify the cost for scam ads,” he says.
Gary Horner says Whybin\TBWA will be reviewing the standard of work they enter this year. “I think there will be fewer entries but hopefully that which we consider to be the great not the good,” he says. “The real frustration is if the agency is genuinely growing then in theory the number of entries should be going up because you have more opportunities, more clients and therefore more work.”
Ironically, the economic downturn may just result in the best international awards year yet.
