Saturday, August 2, 2008

News from Detroit. And Madison Avenue.


Once again auto sales plummeted last month--13.2%--to the lowest total since the Bush I administration. Let's see, GM was down 26.1%. Ford, 14.1%. Chrysler down 28.8%.

Those stats got me wondering. I left a great agency some years ago. What percentage are they down? (It seems all they've done over the last few years is cut staff.) About five years ago, a friend of mine left the presidency of a venerable agency--is that agency down 20%, 30%, 40% or more over those years.

The point isn't that misery loves company. The point is that in relatively free markets there is a bit of Darwinism working--you know, survival of the fittest.

These are dinosaurs that are dying. One that runs on dead dinosaurs. One that's run by dinosaurs.

2 comments:

Tore Claesson said...

it's clear that most everyone of the big network agencies are down year after year. still, however, they seem to post revenue gains year by year. i must assume that comes from markets outside the US.
Ad spend hasn't gone down really, so question is whether there's been a client/project migration to smaller agencies and an equally large migration of people? Or are fewer people doing more of the work?
I wonder if there are any numbers available?

geo said...

We just know it all sucks. Worse than ever.