This post began as a comment on a post at Agency Spy.

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But because I didn’t want to get on soapbox on their comments boards I posted it here.  This will explain the bulletpoints.  Read on people:

Small business has and will always be the backbone of US business.  Advertising is no different.  And as such there is still a ton of business out there to be had.  So the industry shrinks 10%. 15% 20%. That still leaves billions in advertising spending in this country.  Yes, even in this economy, good, creative marketing happens every day.  And pitches go to the ones who can demonstrate the smartest use and best value for their client’s dollars.

  • Budgets are being cut: true
  • Clients need to do more with less: true. By the way, they have no choice. Don’t you think they’d rather have $2 million for that campaign instead of $900K?
  • If you wait around to be invited to a pitch by the large search firms you’re SOL: Mostly true – if you’re a small to midsized agency–you’re the first to go.

Advertising is changing (again).  Agencies need to change with it.  Smaller agencies are better positioned to be able to shift rapidly.  Adaptable, smaller agencies will see a disproportionate number of wins coming at them that before may have looked only at the large shops.

Historically agencies have done a really crappy job, operationally, of making meaningful changes that will position them to prosper when budgets constrict.  As agency people we don’t take our own advice!  If a client wouldn’t hear this–we’d declare them idiots and institutionally slow.

It also helps to have some perspective. 10 years ago when the dot com bubble burst, people were prognosticating doom and seeing whole revenue streams dry up.  What happened was new revenue streams began.  Even at a trickle it’s a great time to get on board with a client who you may have indentified in the past as not offering a big enough piece of pie to be worthy of your time.  Let the big guys kill each other over the multi million dollar accounts.  If a $25 million account is all you’re interested in, it may be a long time before you eat!