John Gapper of the FT went to the 4As conference this week (American Association of Ad Agencies). He concludes that there is tremendous overcapacity in the ad industry and thinks Madison Avenue is about to shrink significantly.
That’s a bummer for the ad folks, especially the traditional ad folks. Of most interest to those who make their livings in media, however, was this quote from Laura Desmond:
Laura Desmond, chief executive of Starcom MediaVest, the media planning arm of Publicis, says the industry is heading into a “50-50 world” in which half of revenues go to digital and interactive campaigns.
50 per cent. If you’d said that back in the late 1990s, at the peak of the dotcom hype, you’d have been laughed out of the room. Now it seems perfectly reasonable.