Magazine article Marketing

Important Note for Ad Agencies: Stop Whingeing

Magazine article Marketing

Important Note for Ad Agencies: Stop Whingeing

Article excerpt

If I were a client I would be getting pretty ratty by now. When, I would like to know, are advertising agencies going to stop moaning and groaning? They had a rough time during the recession - who didn't? But things perked up a couple of years ago, and since then many of them have been doing very nicely, yet still they whinge and whine like cats whose tails have been stamped on.

Few business people, in any industry, like to acknowledge the fact that everything in their garden is rosy and profits are plentiful. It tempts fate, sounds complacent and, worst of all, encourages customers to demand lower prices and staff to demand higher salaries. Hence many canny businessmen constantly emit a rumble of grumble.

But the agency moaning minnies don't have a leg to stand on. Consider their three basic gripes. First, clients keep squeezing their margins. Second, they are losing turnover to other forms of marketing. Third, management consultants are trespassing on their patch and stealing the bread from their mouths. All three, though widely believed, are codswallop.

First, there is no evidence that agency margins are shrinking. Leading financial analyst Willott Kingston Smith show agency profits-per-head at record levels and agency productivity increasing. Second, ad expenditure has been growing strongly, as a percentage of the GNP, for three years. At 1.64% it is back to mid-80s levels, and not much below its 1989 peak. Advertising, in other words, is a growth industry. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.