The stunning pistes of Klosters will be even busier than usual this week. As 2500 international business and political leaders gather for the annual World Economic Forum in nearby Davos, many will be tempted to abandon the unremitting talk of financial crisis for an afternoon on the slopes.
Sir Martin Sorrell, Maurice Lévy and John Wren are unlikely to be among the fortunate escapees, however. The chief executives of WPP Group, Publicis Groupe and Omnicom - three of the global marketing services industry's 'Big Four' - will be in Davos, but far too busy persuading clients (both current and desired) not to slash their spending on brand-building campaigns during what is certain to be a torrid 2009.
This heavyweight triumvirate faces a tough task. With each passing week, the bottom of the economic slump appears paradoxically further away, and the calls on companies' precious cash reserves become ever-more urgent. Conserving the dividend, paying essential suppliers and employees and servicing the debt burden have become priorities for bosses, many of whom have never before had to steer a company through a recession.
No wonder marketing professionals are fearful. Whether you work for a UK bank (in which case the government is likely to be or become your employer), a retailer, a car manufacturer or a travel company, looking your chief executive in the eye and asking them to sign off a major piece of brand-building activity must feel like professional suicide now.
We are already starting to see the grim effects of the contagion that has gripped the banking industry infecting marketing departments far beyond it. As this month's IPA Bellwether Report outlined, the advertising budget cuts recorded in the fourth quarter of last year are set to accelerate through 2009.
It is not hard to see where the cuts will come. Since November, high-street chains including major marketing spenders such as Woolworths have fallen into administration; in banking, expect Royal Bank of Scotland's logo to disappear from the sides of Formula One cars before long; and without some form of government financial assistance, it would be reasonable to assume that the marketing fire power of Jaguar and Land Rover will diminish.
The cost-cutting imperative is seizing control of chief executives, who are often buoyed by encouraging noises from shareholders. Some even appear to relish the opportunity. One chief executive of a major British company that is not itself embroiled in financial turmoil told me recently that recession provided sufficient 'air cover' to cut costs across several departments, including marketing. When I argued that by maintaining marketing spend, the recession gave him the opportunity to increase his firm's market share, he looked at me as if the idea was insane.
I left that meeting depressed. What the economies of both the UK and US need is controlled consumer spending.
But there is another problem, one that will be fully reflected in Switzerland this week. The fact that there will be fewer marketing directors in Davos (Amanda MacKenzie of Aviva was the only UK marketing chief I noticed when glancing at the list of delegates) than there are solvent UK banks tells its own story: marketing is still woefully underrepresented in the boardroom.
Rectifying that is still a long-term game, but without a voice - or, at least, a sympathetic ear - on the board, resisting duress from above to accept a disproportionate cut in marketing budgets becomes increasingly difficult.
Sir Martin, Mr Wren and Monsieur Lévy will be carrying a big burden on their shoulders this week.
Mark Kleinman is City editor of The Sunday Telegraph
30 seconds on the World Economic Forum
- The World Economic Forum (WEF) is an independent, international organisation, incorporated as a not-for-profit foundation in Switzerland in 1971.
- Its motto is 'Entrepreneurship in the public interest'.
- WEF states its aims to be: 'The foremost organisation which builds and energises leading global communities; the creative force shaping global, regional and industry strategies; and the catalyst of choice for its communities when undertaking global initiatives to improve the state [of] the world.'
- This year's 39th annual meeting, which takes place from today (Wednesday) to Sunday, is themed: 'Shaping the post-crisis world'.
- Participation is by invitation only. More than 2500 attendees from 96 countries are expected, including more than 1400 business leaders, representatives of NGOs and trades unions, media leaders, experts in various fields, religious leaders and more than 40 heads of state and government, including prime minister Gordon Brown.