A chill hits Madison Avenue; as spending cutbacks pinch major media, advertising agencies also get clipped; 'This is payback time.'(how the economic downturn is affecting ad agencies)

Article Abstract:

As the U.S. economy cools, ad agencies are reducing their work forces. Recent years have seen major consolidation, leaving six global ad agencies that dominate the industry. Another trend has been the expansion of the holding companies beyond advertising services to include public relations, marketing and niche services.

United Kingdom, Japan, Market information - general, Agencies, Magazine Advertising, Human resource management, Mergers, acquisitions and divestments, Statistics, Omnicom Group Inc., OMC, Marketing industry, Publicis Groupe S.A., WPP Group PLC, Leo Burnett Company Inc., Havas S.A., Interpublic Group of Companies Inc., IPG, Layoffs, Dentsu Tec Inc., GREY, Grey Group (New York, New York)

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Alcatel has a dream - and a controversy

Article Abstract:

Alcatel has run into some controversy with its television ad featuring Martin Luther King Jr. The telecommunications company aired the spot before testing it with focus groups and Adcritic.com's survey reported that 25% of its respondants found the ad inappropriate. NAACP chairman Julian Bond wants the ad pulled. Alcatel got permission to portray Dr. King in the $20-$30 million campaign and plans to continue the campaign. Havas Advertising created the ads. However, companies are increasingly "copy test" advertisements before they broadcast.

COMMUNICATION, Communications, Broadcasting and Telecommunications, Ad Testing, Usage, Telecommunications services industry, Telecommunications industry, Contracts, Advertising, Compagnie Financiere Alcatel, Portrayals, ALA, King, Martin Luther, Jr., Focus groups, Alcatel

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Agencies are back to keeping it simple

Article Abstract:

Because advertising agencies are anticipating to spend not much more than $64 billion that was last year's budget, campaigns will be less elaborate and complex. Creative teams will be under more pressure to give the client more for their money even as agencies lay off staffs. Lowe Lintas is evaluating team members by the quantity and quality of unsolicited ideas. Agencies anticipate their most difficult year in a decade.

Radio, TV, publisher representatives, TV Advertising, Media Representatives, Campaign Effectiveness, Newspaper Advertising, Management, Evaluation, Product development, Influence, Television advertising, Lowe Lintas and Partners Worldwide, Economic lag, Goldsmith, Gary

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