Advertising Agency Prosperity During A Recession – Fuhgedaboudit
Is your advertising agency ready for the next recession? Have you been thinking that the current sweet economy that has helped the small and medium-sized advertising agency market to prosper in the past couple of years was going to last forever?
Well, the time has come to fuhgedaboudit.
Early last week a smart agency client of mine asked me about the current volatility of the stock market that is driven by increasingly inept and ill-timed trade war announcements. He mentioned that his clients are getting skittish because they do not have a clear view of the future. Uncertantude is not a harbinger of growth in client marketing, advertising spending and therefore agency security.
Yesterday the stock market dropped 3% on thinking that a global recession is coming. Does this make you feel secure? Even if the market continues its up and down ride, clients will be spooked for awhile.
The Advertising Agency and Recessions
Recessions breed fear and loathing within client ranks. I know this having gone through some major recessions where worried clients lower budgets, stop programs and begin to fire and change agencies. You do not need to hear my personal history. But you should remember the ‘great recession’ of December 2007 through June 2009. The USA GDP dropped by 5.1%.
To be direct, that recession fucked the advertising industry and I am not sure that the industry, as in what it can charge clients, has ever recovered. I won’t go into detail about the recession. But, if you need a memory nudge, watch these two movies again: The Big Short and The Queen Of Versaille.
What Can You Do? Think Business Development Baby.
You know what happens to client spending and loyalty during an advertising recession. What can you do about it other the tried and mostly failed attempts of trying to convince clients that recessions are exactly the time to increase advertising branding and spending.
Well, you should now up your agency to prospect B2B marketing and spending. Get that account-based marketing program off the shelf. That means it is time to market your agency because:
- One or more of your best clients will exit through the back door.
- You’ve been too complacent. When business is good, advertising agencies think the good time will roll on. Not.
- Sorry, referrals will not sustain any agency growth during a recession.
- Good news, your competitive advertising, digital and PR agencies have been somnolent as well. They’ve given you a big marketing gap to fill.
- “Consultants” like Accenture are smarter than agencies when it comes to managing recessions. They will eat up some business.
The recession is coming. Tomorrow? Next year? Who knows. But, I do know it is coming.
It is time to up your advertising agency marketing game. By the way, this is not my first rodeo. Here is an older blog post on recessions.