This story was carried on Friday morning’s BBC business news, although actually, the quote and the figures which prompted it have been around for a while. It comes from Sir Martin Sorrell, CEO of global advertising agency WPP, which is the parent company of a number of other ad agencies. The company’s profits are rising again, after the ‘most worst’ (my words) advertising recession ever seen. Interestingly, within WPP, online marketing seems to have put in the ‘least weakest’ (again, my words) performance.
Earlier in the week, we had the latest figures from ITV, showing a 2.7 billion pound loss in 2008 converted into a profit of 25 million in 2009 – significantly less worse! Traditional advertising revenues were on the slide before the recession bit and the improvement (or should that be ‘negative deterioration’?) is due at least in part to changes in the kind of advertising offered – specifically, the increase in ‘spot’ ads – directly attached to programmes. These are supposed to catch the viewer who has drifted away during the ad break – or whizzed through the ads while watching via Sky+ or similar. Then there are whole segments of viewing sponsored by one advertiser – so their ad pops up at the beginning and end of every part of every show in that segment.
It’s quite comforting, in a way, isn’t it, to know that even a massive global industry like advertising has to move with the times, to adapt to changing technologies by coming up with innovative ways of reaching their target market?
As for the negative dressed as a positive – or is it the other way around? – I find that less comforting. In fact, I find it quite disconcerting. As we climb out of recession, whatever industry we’re in, if we’re scared to look forward with confidence – and to admit that’s what we’re doing – aren’t we in danger of missing the next opportunity? Any thoughts?