Advertising. (Barely Making the Grade).Year in Review: Years of plenty gave way to famine famine Extreme and protracted shortage of food, resulting in widespread hunger and a substantial increase in the death rate. General famines affect all classes or groups in the region of food shortage; class famines affect some classes or groups much more severely than for advertising agencies and public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most firms. A bad economy, sagging sag v. sagged, sag·ging, sags v.intr. 1. To sink, droop, or settle from pressure or weight. 2. local television commercial production and the Sept. 11 terrorist attacks were some of the factors that led to a dearth of work. Agencies laid off employees and some PR firms even shut down. Among the casualties: Stoorza Communications' L.A. office and Carl Byoir & Associates... With fewer accounts available, the competition for work became fierce. Large firms began fighting for small accounts they never would have considered in the past. Advertisers spent less but demanded more. Players to Watch: Initiative Media North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , a Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. media-buying company... The company lost the Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney media buying and planning account to Starcom North America of Chicago in a review by Disney, which was one of Initiative's largest clients... Grey Global in L.A; despite an industry-wide downturn, the agency won two large state accounts in 2001 and reported a 25-percent increase in revenues. Buzz for 2002: There will be a lot of movement in the industry as companies put their accounts into review to try to get the most for their money. Automotive accounts held by L.A. agencies, including Hyundai and Kia, have come up for review or are expected to this year. The industry will become even more competitive. Small agencies will struggle to compete with large ones. Clients will continue seeking fee reductions and added-value deals. "Integrated advertising," which goes beyond product placement to include creating a show around a brand, will become more common as networks and advertisers look for ways to save money. Viewer-drawing events like the Winter Olympics and the Academy Awards will get companies thinking about advertising again and spark a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in the second quarter. If a few companies start an advertising push, their competitors will follow. Still, caution will be the word of the day. Few advertisers will feel confident enough to take chances and put out eye-catching campaigns. Some, however, will seize the opportunity to distinguish themselves from their competitors... Advertisers will look for short-term deals and wait until the last minute to put their money down. Grade: C+ |
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