Tuesday, February 19, 2008

Media Down, Marketing Up

Today, I started off by reading the Wall Street Journal and found a link to this story in AdAge, "Media Work Force Sinks to 15-Year Low." It begins:
U.S. media employment in December fell to a 15-year low (886,900), slammed by the slumping newspaper industry. But employment in advertising/marketing-services -- agencies and other firms that provide marketing and communications services to marketers -- broke a record in November (769,000). Marketing consulting powered that growth.

Here's the reason behind the disparity: Marketers still invest in marketing, but they have options far beyond paid media: digital initiatives, direct marketing, promotions and events, just to name a few. That creates more opportunities for consultants to help define strategies.

Agencies also have adapted, expanding beyond simply creating and placing ads. Indeed, Ad Age DataCenter research has shown that U.S. marketing-communications agencies collectively in 2005 for the first time generated less than half of their revenue from traditional media and media planning/buying.
We've all been hearing about the struggles of traditional media, especially media, but I didn't have any idea that the agency world was a growth industry.
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