In Tough Economic Times Global Agencies Bet on Internet
Tuesday, October 28th, 2008As the economic rollercoaster continues, two of the largest ad and media agencies in the world are betting on the digital ad space as their place for growth. Also, recent reports are showing that even though marketing budgets are shrinking fast, the percentage being allocated for digital media is growing thanks to the highly measurable nature of the medium.
From MediaPost:
Three of the world’s biggest advertising and media services organizations – Aegis, Interpublic and Publicis – reported relatively strong third quarter results this morning, but signaled unanimous concern over the weakening global economy. While their long-term outlooks remain uncertain, two of the three – Aegis and Publicis – indicated that media would remain their sweet spot, especially digital media, within an erratic economic world.
“Our digital businesses and our investments in high growth economies are continuing to sustain our growth in an economic environment that has become harsher as the worsening financial crisis impacts the real economy,” Publicis Chairman-CEO Maurice Levy said in the agency’s quarterly statement, adding, “In this context where growth will essentially come from digital and emerging markets, Publicis Groupe should improve its position against its main competitors.”
“Digital is a new world and we should not compare digital to what digital was in 2000,” he said (Publicis Chairman-CEO Maurice Levy). “In 2000 digital was mainly Web sites and some funny things and obviously when the market collapsed, everything collapsed. Today there is the Google of the world, there is the Yahoo of the world, and the MSN and we are all looking for addressing the communication to the end users through search and through different ways of communication. And this communication is highly measured – we know if it is working or not, we know the return on investment immediately, we know what works and what doesn’t work. So I don’t see digital collapsing, I don’t see digital going down, I see digital still growing in 2009 and the years to come.”
If agencies in Puerto Rico fail to allocate adequate resources into digital media the growth in the advertising spending from their clients will sure see a big decline.
Read the whole article here.
