Ad industry needs to revert back to fundamentals
An obsession with insights and results has resulted in the ad industry losing its core competence
The end of the communications industry is nigh unless we quickly revert to the fundamentals of the business. The unceremonious resignation of Sir Martin Sorrell from his brainchild, WPP, is a signal that the attraction of agency consolidation has passed its expiry date and that the fake cure has been exposed. Our industry has been battered by a number of storms at the same time, severely eroding profit margins and blowing away the cash needed to invest in talent to take it forward. Digital technology mopped up the hordes of staff that traditionally peopled advertising agencies. Suddenly there were fewer people to charge for. The collapse of print advertising has left a revenue hole that will be impossible to replace. Though television has grown in both quality and quantity, the cost of production remains prohibitive, and the return on investment has been reduced because of the availability of competing media. Social media has smashed the industry and reduced it to a duopoly. The b...
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