Predictions… Results… Changing Landscape
January 26, 2010 | 3:02pm
At the end of every quarter, STRATA conducts a survey of our media buying agencies. This is a short, anonymous survey with the focus being on challenges and the focus of ad agencies. The results have been very interesting over the last year. When posed the question – “What has changed most in your industry in the last five years?” – Nearly 60% of the agencies selected Electronic Connectivity. That is up 78% from a year ago.
Electronic channels have definitely changed the advertising industry and are shaping the future of this space. According to a recent article by Jennifer Seidel of the 4A’s, “Advertising has undergone dramatic changes…Digital technologies have transformed the way we do business.” Here at STRATA we see that change every day. We had over 2.6 million electronic orders and invoices flowing through our systems in 2009. We expect that number to climb higher this year.
Doing business more efficiently is paramount for agencies. According to a report by Ad Age, “Ad-agency jobs in October 2009 were down 14% from the recession’s December 2007 start – A loss of 26,300 jobs.” Although this is a terrible statistic, it has forced many agencies to use electronic channels to do more with less.
Even though the stock market is showing signs of a rebound, jobs will not follow as quickly. So expect agencies to still have a strong focus on digital technologies to meet the growing advertising demand while keeping staffing low.