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.


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?

george tannenbaum said...

We just know it all sucks. Worse than ever.