Advertising and PR Firms are Canaries in a Coal Mine

Advertising and PR firms are often the canaries in the coal mine when it comes to economic indicators. Because we work on the cutting edge of production and consumption, we often see, and are affected by, economic downturns and upturns earlier than more general service industries. So for all the folks who thought we were crazy talking about a downturn back in late 2007, oh well….

But now that we are all here, let’s talk about survival.

Surviving in a downturn means taking the same medicine as our clients - controlling costs, being fiscally responsible, and providing value for money.

The first responsibility is to stay solvent. If this means cutting agency travel, perks and even staff, then you just have to bite the bullet. Observing the impact of some recent agency bankruptcies provides well-managed companies a chance to capitalize on Koroberi’s history of fiscal responsibility, good credit and strong cash position - credentials and references that are of equal importance to good work. Nobody wants their trusted business partner to go under, and even less so to go under owing money already paid by the client in good faith.

But in addition to sound financial management, you’ve got to proactively provide clients with more for less. Don’t wait for the budget cuts, they are going to come. Instead, look at ways you can help your client succeed in spite of the budget pressures they face.

If you are able, offer to assist with client cash flow management through delayed or accrued billing.

Keep negotiating with publishers and other vendors for better deals and discounts, and pass these on to the client. Of course, you need to have great credit and a good paying history to get these discounts, which reinforces the need for sound fiscal management mentioned earlier.

Develop program and package bundles that allow you to pass on savings in return for longer term client commitments. We are all in the same boat, so be open about what you are doing and why. Publishers, media companies and printers intent on survival would all rather have some business at some price than no business at too high a price.

And finally, don’t be afraid to ask for help. There is nothing like sharing the bad times to build relationships.

With a little help from our friends, we can all survive to thrive another day.

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