MediaVest: 50% Of Ad Spending Going Online


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.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at