Monday, March 16th, 2009
Q&A with Miles Nadal, chairman and chief executive of MDC Partners Inc., the world’s ninth-largest marketing communications firm.
Q:
How do you think ad agencies will need to change in order to meet the economic challenges ahead?
A:
The impact of the economy affects all business. Companies are by the day shrinking and they will be much more discriminating about how they deploy capital. Clients will be far more focused on where agencies put their resources — more focused on putting it into talent and spending less on overhead and non-productive costs. Clients will look at campaigns and strategies that produce results in the marketplace. An ongoing theme has been targetability and measurability of impact, of return on marketing investment.
But we have a $600-billion industry globally — no matter what the change is, it’s still an enormous industry and enormous opportunity. If you produce brilliant work, clients will ultimately beat a path to your door.
(more…)
Wednesday, March 11th, 2009
Q:
Boutiques really do seem like a more economical business model. Not only do they have all the benefits listed, but it also seems like there is less start up cost. This in turn makes it less expensive for them to get started during an economic crisis. However is there ever a point in time where the market can become over saturated with too many boutiques? At what point do these boutiques begin to get bought out by larger companies? -Chris, Wichita
A:
Great question. We think that the boutique industry regulates itself in that weaker companies are weeded out during difficult economic times. As for being bought out, we have no desire to become the biggest video production company. We simply strive to be the best, no matter our size. Our goal is service to our clients, above all. We look at it as 50% product, 50% customer service and have no interest in growing huge or being bought. Thanks for the comment! -Intake Studio
Ian from Springfield, Missouri made some excellent points in his comment on IntakeStudio.com:
Smaller can be better, especially in a hard hit economy. Everyone is thinking about saving the environment, their checkbooks, and keeping their downtowns alive. Small locally owned businesses can contribute to all three. They provide variety and a uniqueness that can’t be found in other towns. They typically keep the money within the community, thus expanding the local economy and boosting everyones bank accounts. They help the environment by not having to ship large amounts of product across oceans or strip large swaths of resources. Ideally local businesses would work together to share resources and production.
We appreciate the participation. Leave a comment or shoot us an e-mail with a question of your own.