So yesterday I posted about the effect the upcoming recession (and with world markets down again today, there's no question it's happening) would have on ad budgets and agencies profitability. That's what makes today's Reuters story on BBD&O, CEO, John Osborn so interesting. As usual, he warns that companies worried about a U.S. economic slowdown should think twice before cutting their marketing budgets, particularly when it comes to money earmarked for more unconventional types of advertising. Well, what else is he going to say, and even though it's partially true, because when these companies come out of a recession, they have to spend a ton of money to catch up with their competitors who continued to advertise. OK, nothing new there, but what I found interesting was that he was making a case that even if they cut down on traditional media spending, they should perhaps invest more in new media forms. Partially because they are cheaper, but primarily, because they are more targeted. Which begs the question... If new media is that much more efficient and effective, why wait for hard times to put most of your budget into it?
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Yeah... But it took a while!
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