Where Adweek Meets Businessweek
February 4th, 2010 | 
Author: Where Adweek Meets Businessweek
If you watch the news its hard to escape talk of a recession or a downturnand some people have floated the possibility of a depression.
Whatever you want to call it its a real downer.
You dont have to personally be in dire straits to feel the effects. Odds are someone you know a family member a friend a coworker is having some difficulty. Our world is so interconnected these days that its hard to feel completely removed from the perilous state of our economy.
Therell be a recovery. There always is. But this time it seems a complete comeback is less assured. We dont manufacture as much in America as we used to so those particular jobs arent coming back and often get replaced with lowerpaying ones. But thats only part of the problem and the ad industry needs to pay attention.
What makes our economy run now is consumer spending. Consumer confidence is a important metric. Both are of course fueled by advertising and marketing. Were the patron saints of buying stuff. So its hard not to feel the pressure to keep our clients businesses humming.
No matter who your clients are that pressure exists. If gas hits 4 a gallon people will spend less on dinner or entertainment in order to fill up the tank. Thats a small behavioral change. But there are even bigger concerns. As a country were mortgaging our futures to buy stuff now. If consumers increasingly pile up debt and more people lose their jobs or their homes I wonder: Who will keep buying what advertisers need to sell? How much more can people spend? Most importantly how much longer can we ask them to keep spending so much and so often?
Some people believe theres no better time for a business to advertise than during a downturn. Which may be true but you cant tell your client to pretend that everythings OK. And it effects the nature and quality of the creative work we produce. Strategically speaking what do you tell your clients to emphasize during tough times? Trust? Low prices? Value? Remember clients are nervous and fearful by nature and now the economy makes them even more so. I gotta move product is a refrain Ive heard quite a few times.
If youve been in advertising for a few years then youve seen this before. Nothing seemed bleaker than the aftereffects of the dotcom bust in 2000 2001. Every economic downturn weeds out bad businessesand ad agencies are no exception. A few agencies will merge themselves into oblivion and a few will go out of business altogether. Its a powerful reminder not to be too content to coast or adopt a bunker mentality until theres an economic recovery. Yes its a time to try bold new ideas or reinvent the business. Youll be perfectly positioned to ride the next upward wave.
On the flip side we cant be reckless either. The ad industry must be careful not to shove too much money resources into unknown technologies and unproven tactics. In other words dont pour money down the drain of Second Life if you dont have your shit together in your First Life.
Unfortunately I think for most agencies itll be business as usual. Because few agencies have the will to do something unusual like tell their clients to improve customer service so they keep more of their current customers during a downtown. Its always sexier to spend a clients cash to get new customers than to keep the current ones happy.
If you cant be concerned with the big picture you still need to protect yourself. Maybe you dont have the power to change the agency you work in but you can be aware of the business situation your agency finds itself in. Be cautious if youre working at an agency dominated by one client or one product category. And be leery of working at an agency that only does traditional work and no interactive. Or vice versa. Clients need all sorts of creative work and tactics to get their message across in tough economic times and theyre all too happy to move their account to the agency that can deliver the right mix.
Above all be ready. For anything. Theres no economist trendspotter or futurist guru who can definitively tell you what will happen to the economy this year or next. We all find out the future at the same time.
And if those thoughts dont lift your spirit you can always try a good antidepressant. At least youll keep pharmaceutical advertising going strong.
About the writer:nbsp;nbsp;Branding. Religion. Censorship. Office politics. Global politics. Sexual politics. And getting drunk during a job interview.
Since 2002 Danny G. a.k.a. Dan Goldgeier has been writing the most provocative advertising columns ever published. They’re all witty thoughtful and probing and a must read for those who want a perspective rarely seen in traditional industry publications.
An Atlantabased copywriter and ad school graduate Dan has worked at shops big and small. He reads incessantly about advertising and is a whiz at rock roll trivia. Learn more about him by visiting his copywriting website or AdColumnist.com the View From The Cheap Seats Archive website. You may also find articles by Danny G at TalentZoo.com.
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