This Recession Will Restructure Advertising
Wednesday, February 25th, 2009
The current media and advertising recession will be more severe and more transformative than any one of the last 80 years. This will be a time when it won’t be just about how far down ad spending goes, but also about what media entities and even business sectors will survive.
Historically, advertising recessions have been 1-2 years in length and have been about a contraction in ad spending on measured media. Everyone hunkered down, altered pricing strategies, leaned on relationships and waited until the inevitable spending upsurge occurred. The advertising recession of 2008 - 2010 will be different. This time, entire structures on both the buy and sell side will collapse. The institutions that were developed and rigidified in the 20th century are clearly not mirroring the dynamic changes of the media marketplace in this new century. The advertising agency constructed in the second half of the last century no longer reflects the media reality of today. The same can be said of the hierarchical distribution channel specific media sales organizations. There are agencies and media properties that exist today that will either cease to exist or will survive in substantially altered forms by 2011.
Category Advertising, Economy | Tags: Tags: Advertising, Agency, Industry, Prediction, Recession,