2011 has seen VAT rise to the highest level it has ever been in the UK - we are now at the same level as most of the rest of Europe. For fairly obvious reasons, the press has gone mad over this issue, predicting everything from company closures to a double dip recession.

For most consumers in the UK, the VAT rise will not make a huge difference to their annual budgets - about £400 - though if they are making large purchases this year like a car, that will make a more obvious difference. The government has said that the rise will be permanent - this is important for businesses because people will not put off large purchases waiting for the VAT rate to go down. There is a greater worry as to what will be the long term effect on the very lowest of earners, but no doubt we will learn more as the year goes on.

Petrol is one area where people will notice the difference - consumers are very sensitive to price changes at the pump and the increase in fuel duty in April will add insult to injury for many.

For businesses selling to consumers, this year is going to be very important. Unlike with a recession a business cannot sit on its laurels waiting for better times - keeping up the momentum is very important. Promoting the brand and good deals must be very high priority this year - the brand because people will look for familiarity and the good deals because customers will be worried about the VAT rise even if the effect on the item is actually rather small.

There is an argument to say that this is probably the wrong year to be too subtle, though I would warn against everyone turning to hard sell - if the advertising breaks become boring, listeners will simply stop listening!

A music ident or jingle could be the perfect vehicle this year - good strong vocals with a catchy hook (not necessarily the company name) and room for selling those important deals always stand out, and this year that is more important than ever. Slow burn campaigns are probably best left for the future - instant impact is what is needed today.

A jingle is an investment for a company. With Dancing Bear, they don't just pay for the campaign or for this year, but we licence the jingle for as long as they like on a per radio station basis (please note, this only applies to small companies with limited advertising spends). This means they can be getting the same impact this year, next year and the year after and only have to pay for new scripts and voice-overs with their radio station. If a company is going to invest in a music identity, then this is the time to do it when it is so important for them to get their message out to a very cautious consumer market.

For more information, contact me and we can discuss your requirements.