The recession has created a change in the fundamentals of the advertising world. The new face of the ad business includes clients reducing ad expenditures and scaled back marketing costs including renegotiating agency fees. Once the recession is over, this new client behavior is not expected to revert back to pre-recession ways.
PriceWaterHouseCoopers reports that advertising expenditures will total $467.3 billion by 2013 worldwide. This is about 2.5% lower that 2008’s tally of $479.3 billion. Consumer confidence will also affect this figure over the next few years. The current global economy has forced agencies to explore new business models and look forward toward emerging markets and new media for growth opportunities. It has also shown the consumer that they do not need to spend like they did pre-recession. Industry experts have differing opinions about the future of consumer spending. While some believe that frugality is here to stay, others believe that spending will be halted only until the economy starts to turn around.
What everyone agrees on though, is that the push towards digital was inevitable and was in effect before the economy bottomed out. So the future in digital is only going to grow and become a more predominate part of the advertising world for years to come.
For more information on the new advertising world, go to: http://www.adweek.com/aw/content_display/news/agency/e3ia2224c3f78e5a3ce8f0edef5e540cd3d?pn=1