September 08, 2009

Advertising agencies, news media struggle for survival The once boisterous media industry comprising traditional news media and advertising agencies, is now experiencing trying times.This follows reduction in the volume of adverts occasioned by the recession, centralisation of global marketing communication budgets by multinationals and increasing newsprint costs. Some local advertising agencies have become office extensions to global media agencies that control multinationals’ account.

Therefore, they now affiliate themselves with international advertising groups that conceptualise the ads from which they make adaptations for the local audience.Effects of recession Institutional advertisers, whether local or foreign, regarded as the goose, are traumatised by the hard economic times and therefore have had to cut ad spend. For this reason, the advertising agencies and news media which feed on the golden eggs are facing difficult times.