Wednesday, January 16, 2008

Agencies, time to change your business model

I've been waiting a long time for the underlying business model problems of the traditional agency structure to come home to roost, and it looks like they are. The always astute Dave Morgan yesterday said at an investment conference that people who deal in television are overpaid while online people are underpaid. No news there, but people seldom come out and say it. Couple this with last week's news that Ogilvy not only laid off people but was restructuring to deal with the changing agency business, and you've just about got yourself a trend.

1 comment:

Toad said...

Could not agree more- the gap between "general" creative salaries and interactive ones, especially at the big agencies, is absurd.

Not sure where all the stories about interactive creatives raking it in came from, but I have yet to see it.

Overall, the lower salary structure helps the holding companies since interactive is growing and tv is shrinking.