“Please don’t write another blog post about the economy,” says I, but it can’t be helped. Diversification, failure and opportunity suggest changes in the advertising industry according to a recent article in The Economist.
It seems that like consumables, houses, and cars, this would be a great time to buy advertising. Not just media, but also services.
For bargain hunters this may not be the case. It turns out this “little” recession proves to be a great opportunity for the ad industry to reinvent itself, diversify and roll out new products and services. Agencies might find equal or greater value in home-grown projects. So clients’ projects must offer agencies at least the same value without overlooking relationships and LCV.
If left to our own devices, agencies actually do better work when the client is not involved. Sounds bad, but it’s true. To be fair, our clients face pressure from above, below and beside. Internal audiences, gatekeepers and self-proclaimed experts make marketers’ jobs a beat down. We take away the pain.
However, economic downturns allow agencies opportunities to use their skills as brand builders to assign value to commodities. When idle, with no client work, we look for ways to avoid the advertising roller coaster with diversity. Some agencies have fired clients all together, opting to become their own customer.
The peaks and valleys
Social media, you want it. Twitter, you got it. Brand evangelist, you need them. Despite all that, media media–the old school kind–still delivers customers to the store.
Don’t get me wrong, social media is not a flash in the pan, but agencies that get locked into the old school business model with new media will miss the boat.
Agencies need to push themselves to do what we do best, be creative. Our clients should demand more and better solutions with better cost structures based on results not billable hours and intangibles.
I encourage you to read the article “Nothing to shout about“. A sidebar entitled “Stretching the accordion” is not a bad read either.
As always, you should follow VLG on Twitter.
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