| The recession will accelerate some of the trends we have been seeing in the marketing and communications business. Other than India, newspapers will disappear as they lose advertising and more people get their news from the internet. Television and radio will also lose viewers/listeners to the internet as people continue to download the content they want when they want it.
Clients too are moving more of their budgets to the internet in order to 1) follow their customer’s media preferences and 2) to better track their investments. So the need for advertising agencies to understand the internet and use it becomes even more important. Build it or buy it, you’ve got to have a digital capability to offer your clients or you’ll be out of business.
Now why, in the midst of all this, do I think it is a good year to be independent? Because you do not have anyone in London, Paris, New York or Rollinsville telling you how to run your business. Omnicom and WPP have announced they are firing thousands of staff around the world. Not just because their clients are cutting budgets but also because the Wall Street analysts and their investors are demanding they do something to keep their share price and dividends up.
You do not have their big corporate structure to support. You do not have their strict corporate cost ratios and standards to adhere to. You do not have to worry about a new account that may be in conflict with another in the organization. In short, as an independent agency you have more flexibility to manage your business. You may have to make some tough decisions in 2009 but they’ll be your decisions.
And, you have ICOM colleagues around the world willing to help you get through 2009. But you already know this as indicated by the increasing number of Mutual Assistance Requests (MAR) that we are seeing.
Gary Burandt
ICOM Executive Director
burandt@icomagencies.com
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