March 02, 2009
2009. The Year Marketing Changes Forever
I rarely look into my crystal ball, and even more rarely go public about my thoughts and predictions for the future. But in this case, I feel that I have to as no one is really talking about this in the media.
It goes without saying –and I mentioned it in our first post- that 2009 is going to be a bloodbath for business. I like to fancy myself as an arm chair economist, and –this time- I can see the writing on the walls: The stock market is only going to sink more, more American banks are going to tank, and more layoffs are going to happen.
We’ve all heard of the troubles of City Bank, Ford, Chrysler, GM, AIG, Freddie Mac, Fannie May. And those are just the really, really big ones. There are a host of other big companies that are on the ropes, waiting for the knockout punch.
In 2009, three streets are going to fail, and forever change: Wall Street, Main Street, and Madison Avenue.
We’re all familiar with the issues on Wall Street, and we all know how this is affecting things on Main Street. (You know. Where regular people live, losing their jobs, and are getting evicted from their homes.)
But if these two streets are seeing bloodshed, wait till you see the massacre on Madison Avenue.
Madison Avenue is where most of the big advertising companies reside. It’s also a euphemism for the entire marketing/advertising/PR industry.
If you know anything about this industry, you know that for all the hype surrounding the big firms, they are all basically the same. Almost all of them focus almost only on Fortune 500 companies, almost all of them have HUGE office buildings and carry a massive overhead, almost all of them get 80% of their wealth from 1 or 2 big customers, and almost all of them are on life support right now.
Right now, the marketing industry is seeing layoffs at a rate that hasn’t been seen in decades, and it hasn’t even got really bad yet. Many will collapse before the end of 2009. And the ones that survive will never be the same.
Why? Because the entire industry has fixated itself on the really big guys, when the really big guys go broke, the industry starves. Big corporations cannot pay their rent any longer, let alone an advertising and interactive marketing campaign.
However, there is an important silver lining to these dark clouds and –for once- it’s the little guy that will benefit.
Firstly is that there is going to be a FLOOD of talented designers, writers, PR people, and advertising specialists hitting the markets as they continue to be laid off. If you require an in house specialist for a short period of time, now is the time to look. There is some great talent out there looking for work.
Secondly, advertising rates are expected to drop this year sharply. Now is the time to go out there and push your business. Newspapers, television stations, and radio stations are desperate for ad revenue. If you are a good negotiator you will get yourself a great deal. Don’t believe me? Here’s a list of news papers that have gone or are almost bankrupt in 2009 alone!
Thirdly, with larger firms not advertising as much, mid-sized firms have a chance to increase mind share by being more aggressive in their marketing. While the confidence in large companies wanes, smaller firms can position themselves as a stable more reliable alternative.
Fourthly, if you are a fellow marketing firm of modest size, this is the year to get noticed. A lot of the larger firms will be no longer able to service their clients at reasonable rates. A small firm can clean up this year with a great strategy to get those clients.
From the very beginning, a5MEDIA structured itself to be the anti-agency. We deliberately focused on smaller businesses, and had a business model that demanded a variety of clients of all sizes. As of 2008, a5MEDIA has set itself up to not require a physical office to work from (lowering our overhead and reducing our costs to our clients), but also instituted an online collaboration system to allow us to work more effectively with clients no matter where they are in the world.
I’m not saying this (just) to toot our own horn. (Toot!) I’m mentioning this because this ‘market correction’ in the advertising world is going to affect the way a lot of businesses do their marketing.
Ultimately, Madison Avenue will come roaring back. But it won’t be this year or even next. But these two years will forever change the industry in my opinion. Firms are going to get more humble; they will rely more and more on out sourcing and freelancers, and will ultimately take on more medium sized clients to diversify their client base. (Sound familiar?)
In the meantime, it’s a golden opportunity for small business and small marketing firms. Don’t let this year pass you by without taking advantage of it!
Yusuf Gad
President, a5MEDIA
http://www.a5media.ca
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March 02, 2009
2009. The Year Marketing Changes Forever
I rarely look into my crystal ball, and even more rarely go public about my thoughts and predictions for the future. But in this case, I feel that I have to as no one is really talking about this in the media.
It goes without saying –and I mentioned it in our first post- that 2009 is going to be a bloodbath for business. I like to fancy myself as an arm chair economist, and –this time- I can see the writing on the walls: The stock market is only going to sink more, more American banks are going to tank, and more layoffs are going to happen.
We’ve all heard of the troubles of City Bank, Ford, Chrysler, GM, AIG, Freddie Mac, Fannie May. And those are just the really, really big ones. There are a host of other big companies that are on the ropes, waiting for the knockout punch.
In 2009, three streets are going to fail, and forever change: Wall Street, Main Street, and Madison Avenue.
We’re all familiar with the issues on Wall Street, and we all know how this is affecting things on Main Street. (You know. Where regular people live, losing their jobs, and are getting evicted from their homes.)
But if these two streets are seeing bloodshed, wait till you see the massacre on Madison Avenue.
Madison Avenue is where most of the big advertising companies reside. It’s also a euphemism for the entire marketing/advertising/PR industry.
If you know anything about this industry, you know that for all the hype surrounding the big firms, they are all basically the same. Almost all of them focus almost only on Fortune 500 companies, almost all of them have HUGE office buildings and carry a massive overhead, almost all of them get 80% of their wealth from 1 or 2 big customers, and almost all of them are on life support right now.
Right now, the marketing industry is seeing layoffs at a rate that hasn’t been seen in decades, and it hasn’t even got really bad yet. Many will collapse before the end of 2009. And the ones that survive will never be the same.
Why? Because the entire industry has fixated itself on the really big guys, when the really big guys go broke, the industry starves. Big corporations cannot pay their rent any longer, let alone an advertising and interactive marketing campaign.
However, there is an important silver lining to these dark clouds and –for once- it’s the little guy that will benefit.
Firstly is that there is going to be a FLOOD of talented designers, writers, PR people, and advertising specialists hitting the markets as they continue to be laid off. If you require an in house specialist for a short period of time, now is the time to look. There is some great talent out there looking for work.
Secondly, advertising rates are expected to drop this year sharply. Now is the time to go out there and push your business. Newspapers, television stations, and radio stations are desperate for ad revenue. If you are a good negotiator you will get yourself a great deal. Don’t believe me? Here’s a list of news papers that have gone or are almost bankrupt in 2009 alone!
Thirdly, with larger firms not advertising as much, mid-sized firms have a chance to increase mind share by being more aggressive in their marketing. While the confidence in large companies wanes, smaller firms can position themselves as a stable more reliable alternative.
Fourthly, if you are a fellow marketing firm of modest size, this is the year to get noticed. A lot of the larger firms will be no longer able to service their clients at reasonable rates. A small firm can clean up this year with a great strategy to get those clients.
From the very beginning, a5MEDIA structured itself to be the anti-agency. We deliberately focused on smaller businesses, and had a business model that demanded a variety of clients of all sizes. As of 2008, a5MEDIA has set itself up to not require a physical office to work from (lowering our overhead and reducing our costs to our clients), but also instituted an online collaboration system to allow us to work more effectively with clients no matter where they are in the world.
I’m not saying this (just) to toot our own horn. (Toot!) I’m mentioning this because this ‘market correction’ in the advertising world is going to affect the way a lot of businesses do their marketing.
Ultimately, Madison Avenue will come roaring back. But it won’t be this year or even next. But these two years will forever change the industry in my opinion. Firms are going to get more humble; they will rely more and more on out sourcing and freelancers, and will ultimately take on more medium sized clients to diversify their client base. (Sound familiar?)
In the meantime, it’s a golden opportunity for small business and small marketing firms. Don’t let this year pass you by without taking advantage of it!
Yusuf Gad
President, a5MEDIA
http://www.a5media.ca
Subscribe to:
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