Does this sound at all familiar: The economy isn’t so hot and your clients are concerned about consumer spending. “This was the reality for not just one, but numerous boutique agencies built on the backs of fashion houses and high end retailers.”
As a result of the economy’s downward spiral over the last decade, it seems that digital and social media have been embraced with a whole a new perspective. Agencies, as a result, have seen their digital businesses EXPLODE.
Dianne Desroches CEO of AR New York said that when recession hit, it were luxury brands and luxury agencies that were really hit that hardest.
“Some [companies] pulled advertising internally. Some went dark. Some were smarter — they said ‘let’s think creatively about this.'”
However, this downfall of luxury advertising agencies opened up the doors for many smaller, independent agencies who many companies were able to afford. They were also willing to give these smaller agencies a chance.
Ruth Bernstein, executive director-strategy and partner at Yard, said that smaller agencies are more owner driven and this appeals to businesses that started out similarly. For example, take a designer who started his own house, or a makeup artist that created their own line.
Fashion designer John Varvatos, one of Yard’s clients, agrees with Bernstein saying that his company does not want a “SWAT team” of marketing people, anyway.
Although it seems that the economy is on the up-climb these days, many agree that luxury advertising agencies will never be what they once were. The recession made companies get creative and seek out partnerships that maybe otherwise never would have happened. It also proved to be a great opportunity for small business owners in the marketing and advertising fields.
Source: Advertising Age