Saturday, September 12, 2009
Not partying with Ted Ferguson either. In times like these, it’s the little shops that get lost in the shuffle. While major brands like Bud can and do switch agencies annually, an article in the St. Louis Business Journal shows just how much their moves this year have disrupted the agency ecosystem. No matter what category you can think of though, there are parallels here for any agencies and brands.
Small shops having one client be 70% of their billings. Others losing half their 20-person staff; a move that a global shop could absorb. If you’ve ever worked in a place that experienced a bloodbath like that, surreal doesn’t even begin to describe how it feels going in the next day and seeing a bunch of empty desks.
Or my personal favorite: The 120-day billing cycle. Typically a sign of a brand or agency in trouble, I like how Anheuser-Busch here is “giving itself” more time to pay others. I tried that with American Express once too. They didn’t bite. Is 30 just a dream anymore regardless of industry? (Yeah, no. Rhetorical. You know the answer.)
Is it parent company In-Bev forcing their hand? Likely. Who doesn’t want it made faster or cheaper, especially the new boss determined to shake things up. (Or in GM’s case, do more of the same.) Ad agencies though are the last ones worried about saving clients money, only staying within budget. Even with big cuts however, they’ll still line up for any scraps they can get.
In times like...
Posted 11:25 AM