In 1991, I was a young copywriter at one of the top ten creative agencies in the country and I had to pay for my own Mac because the agency functioned on PCs. We also wore coats and ties -- it doesn't seem that long ago, but it was.
Approximately fifteen years ago, I moved from a traditional agency into the new world of smaller more nimble ad agencies, staffed with freelancers armed with technology and yes, Macs. This is the world that shifted to online first and I remember when we used to get 6% click through rates on our early banner ads on AOL because people didn't know what they were.
Throughout this process, many big and bloated agencies survived thanks to the asset bubble and the massive spending from clients like car companies and soft drinks. Every so often, I would wade back into this world, as part of a team on a project or even just to visit a friend.
My colleagues and I in the new world would simply be shocked at the waste, the inefficiencies, the fees, well, we were a little jealous of the fees, realizing that junior account people were billing at the same rate our most senior people were. But then again, we don't have the expenses.
My current company handles some very large clients, and I hope they would agree, does some very good work for them. We are passionate and involved. We charge fair fees and pay our people fair salaries. However, our total office rent (for three spaces in three cities mind you) is under $2,000. We offer top health insurance (no employee co-pay) dental coverage (again no co-pay) and paid vacation etc.
So now, as the asset bubble collapses, so too are the remnants of the large agency structure. The layoffs we are seeing in the sector, massive really and growing, will only serve to further hasten the fall of the big shops.
The tens of thousands of people being cast on the street this month won't go back to work at large agencies, ever. Instead, they will start up a thousand small shops like mine. These will be good places with solid people with solid backgrounds, armed with laptops, and cell phones and free conference call numbers, not to mention free video conferencing and gmail accounts.
At the same time, there are tens of thousands of marketing directors whose budgets are going down 10, 20, 30% or more. Their goals are the same, maybe even higher. Inevitably, the advertising fees will have to be cut, and for smart marketing directors, this is an opportunity to get the same work, maybe better, quicker faster and far more efficient from the small and the smart, versus the large and expensive.
This has been the future for quite some time, but now is the tipping point. Combine the economic factors with society factors (plummeting newspaper readership, the shift to online for news and entertainment) with the economic factors and by the end of this year, you'll see the small shops explode as the larger ones implode.
Some may be lamenting the passing of these shops, and of old style TV advertising and brand campaigns. But here's something to consider. Great brands are still being created every day, not by launching a great campaign, but by being great companies. The opinions of tens of millions of online consumers quickly defines your brand.
Did Google ever run a TV spot about what they were and what they stood for?
Have you seen the campaign explaining how important it is you YouTube?
Of course not. Even consumer brands who do have traditional marketing programs, Apple, JetBlue, are perhaps more defined by what happens online with real people (great new products, about that tarmac delay) than they are by their traditional campaigns.
This also means one more trick the big agencies used to play doesn't work so well anymore (see Detroit automakers.) If you spent enough money, you could sell a pretty crappy product. That one's dead to now I'll wager.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.