I don't understand the harsh words toward Mr. Sorrell in this comments
section. He's still making a substantial profit that is better than
most companies in the world.
Furthermore, whether through accident or not, his staffing "reduction
was insufficient as revenues fell faster than budgeted," did save a few
thousand jobs at least in the short term, giving peers more time to
figure their financial livelihood out.
The harsh reality in this storm does come with silver digital lining.
We've conducted extensive research we're releasing in a few weeks
entitled "XL Marketing Trends." The Top 10 Trends changing the
marketing landscape now and over the next 10 years.
Some highlights concluded from our study and confirmed independently by
WPP's most recent earnings and more importantly by Veronis Suhler
Stevenson's (VSS) US Communications Industry Forecast, finds for 2009,
US advertising overall will decline by 7.6 percent, with a 1 percent
decline to follow in 2010 and expected growth in 2011 – 2013.
The segments forecasted to decline most rapidly in 2009, newspapers
(down 18.7 percent, to $35.5 billion); consumer magazines (down 14.8
percent, to $11 billion); radio (down 11.7 percent, to $15.8 billion);
and broadcast television (down 10.1 percent, to $43.0 billion).
The few sectors to increase their advertising dollars this year,
include mobile (up 18.1 percent, to $1.3 billion) and the Internet (up
9.2 percent, to $23.8 billion).
The media industry is actually expected to be the third-fastest-growing
economic sector over the next five years, after mining and
construction. Almost none of that growth is forecast to come from
traditional media.
Instead, it will be drawn from areas like Internet and mobile devices,
branded entertainment and word of mouth marketing and public relations.
Paid interactive television gaming and advertising, mobile advertising
and content tied to broadcast television, Internet and mobile home
video downloads, mobile advertising and texting, e-mail and in-game
advertisements will be the front runners within those growth segments.
2008 was the first time in the history of modern electronic
communication consumers spent more time with media they paid for, like
books, cable television, online subscription services than with
ad-supported media, like newspapers and magazines.
What all this means is, every marketer right now needs to develop three important strategies;
1) Mobile
2) Social Networking and a
3) Digital Video Strategy
(for phones and computers).
This maybe the first and last time you read this in Ad Age but, "give Martin Sorrell a break."
And to fend off the negative comments toward me, no I don't work for
him and no, I'm not sucking up. I just call it like it like I see it.
singko says:
Nice post.
March 13, 2010 @ 2:17 pm