So, when setting budgets for the forthcoming period, what do most people do? "How much did we spend last year and should next year be more or less?"

We all know that's less than ideal, but often it just seems too hard to start with a blank sheet of paper, set our marketing objectives, plan ways to achieve those objectives, catalogue the marketing initiatives required, then cost them. Hey presto, a budget. And of course, it does happen this way in many businesses, but there can be niggling doubts. Is it too much? Too little? This is when we may be tempted to ask, "Well what proportion of my total revenues am I putting into marketing, and how does that compare with other similar businesses, particularly my competitors?"

The idea of marketing spend benchmarks is seductive. It would be reassuring to know that others are coming to the same conclusions as we are. But very little examination reveals that while it may seem reassuring, it is a flawed method of comparison and may be downright dangerous.

Consider benchmarking, if we could, against our competitors. It is very likely our competitors will not have the same market share as we have, so right there we can see it would be risky to use such a benchmark. If you are the clear market leader and your main competitor is trying hard to take some of your share, he may decide to live with reduced margins to allow him to put a higher proportion into advertising. To judge against his proportional expenditure could lead you to the wrong course of action for your situation. Then again, your product may be a market leader, but it's getting towards the end of the cycle, while your competitor may have a fresh, new offering. Should we both put the same proportion of revenue into marketing? Hardly. And so on. Your competitor may have a superior, and more efficient means of producing his product and getting it to market, meaning if he wants to he can put more into marketing, while maintaining margins and profits at healthy levels. If you spent the same proportion of your revenues you would be out the door backwards in no time.

Of course, you would quickly work this out and not take that course of action, but it's just another reason why benchmarking is seldom a worthwhile and legitimate approach.

Roger James is chairman of the Australian Marketing Institute

New Zealand also scored two shortlists for TBWA\Whybin\Tequila Auckland Adidas/New Zealand Rugby’s ‘This in not a Jersey/Adithread’ and Colenso BBDO Auckland for Yellow ‘Treehouse Restaurant’. This gives Australian/New Zealand agencies four of the 23 shortlists in Titanium/Integrated.

The USA dominated the shortlist with 14 entries followed by South Africa with two, while Canada, Germany and the UK had one each. Australia submitted18 entries for Titanium while New Zealand submitted six of the 403 campaigns submitted for the category.

Chairman of the Jury is David Droga, founder and creative chairman of Droga5, while New Zealand is represented by Andy Blood, group executive creative director of TBWA\Whybin\Tequila.

The experience involves so many things you will take away with you, no doubt different for each person. The splendour of the views, the good food and wine, for sure, but other things also. For example, my Cannes has included, in no particular order: hearing the campaign manager for Barack Obama reveal how he turned an unheard of individual into the leader of the free world; seeing The Who singer Roger Daltrey perform, with backing vocals from Cannes delegates, Johnny Cash classic ‘Ring of Fire’; witnessing a Jamaican battery operated doll gyrating wildly in front of a Gold Lion; observing a man stood outside the Palais with a box on his head advertising his availability for employment (in both French and English); the world’s worst croque monsieur; and lastly, chicks with dicks (I hasten to add not through any kind of personal experience).

And you can add into this sensory mix, the excitement of the Lions results. And it has been an exciting year for Australia, thanks mostly to the success of CumminsNitro Brisbane and Tourism Queensland. And it’s still only Thursday night, so there seems sure to be more good news to come for that campaign. Why has it won so much? The common thread from the jurors, and on different juries, is that they looked on it as consumers themselves, and it impressed them as consumers, and they couldn’t help but love it.

As for Cannes in the middle of the GFC? Most recession talk has revolved around the parties, or lack there of, rather than in relation to the ideas being discussed. It’s likely to be a big topic of discussion next year, however, given the judging period. But despite the agency pull back from lavish parties, there have still been plenty of sore heads around. Much like the GFC itself, some people will always find a why to make the most of a bad situation.