Agencies Must Raise Efficiency to Stay Alive and Free Themselves to Brainstorm Ideas
Is the advertising industry willing to look at itself and acknowledge that it has a big problem? Can anything reverse what seems like a race to the bottom and allow a rainbow to emerge?
The crisis mirrors what has happened in the newspaper business. Two decades ago, newspapers were profiting by big margins, with no incentive to invest for the future. As technology changed and profit margins shrank, these companies were left with no capacity to invest. So they laid off people. This led to diminished product quality, which contributed to even more lost revenue. Many newspaper companies got entangled in a race to the bottom.
In our industry, the digital revolution has triggered three dangerous trends that, combined, pose a similar life-threatening challenge:
Read more from the source: adage.com