Brands to freeze ads in event of war

by Mark Kleinman and Poppy Brech, Marketing 13-Mar-03

Major UK marketers are drawing up contingency plans in the event of war with Iraq, which could potentially lead to a short-term dip in television advertising revenue of up to 10%, according to media industry sources.

Advertisers including British Airways, Lunn Poly and P&O are likely to pull or delay campaigns if an attack against Saddam Hussein goes ahead.

As marketers across the UK monitor the situation in the Gulf, TV networks are developing alternative programming schedules that are likely to see fewer and shorter breaks around news bulletins as they increase their news coverage. Advertisers will not want their brands associated with coverage of the war, so there is likely to be a dramatic fall in demand for TV spots next to bulletins.

"We are watching the situation closely and we have in-built flexibility with our media contracts that allows us to withdraw advertising when necessary," said a spokeswoman for BA. The airline recently launched a £3m TV campaign to promote its Club World product. Insiders say the ad is likely to be pulled if a war breaks out.

While advertisers in the travel, tourism and leisure sectors will be most immediately affected, it is thought that FMCG manufacturers including Procter & Gamble are also reassessing their marketing strategies.

Oil companies, fearing a surge in fuel prices, are also in discussions with media agencies.

The effect of war with Iraq on television advertising revenues could, however, be exploited by other media.

Hannah Skellorn, marketing communications director of Viacom Outdoor, said the company was exploring opportunities to help clients turn to "alternative media that give advertisers presence in a more neutral environment" than television or radio, where ads could risk juxtaposition with harrowing editorial coverage.