Advertising Agencies Backing Off

[minnapple]

There is some media play, that Ad agencies are backing off of purchasing Adwords. A WSJ "partner" posted an article about it.

The big question is, how big corporations are modifying their ad spending budgets during the current economic conditions?

Do we as publishers look like a value added cost to Ad agencies clients, or not?

Even more, do Ad agencies even know if we are, or are we disposable spending?

[ember]

If anything, advertisers are spending more on us these last few months than before. In fact, today is one of our best days ever. I keep waiting for the slowdown, and it may still come, but so far, we haven't seen it. Of course if we end up in a long, hard recession I think everyone will be hurting.

[potentialgeek]

> Ad agencies are backing off of purchasing Adwords.

How many?

> A WSJ "partner" posted an article about it.

Can you?

p/g

[Edge]

Do we as publishers look like a value added cost to Ad agencies clients, or not?

I'm pretty sure this depends on the website serp position, traffic, quality, and reputation for results.

I made a $4800 plus four fishing rod holders (horse trade) deal with a new direct advertiser on friday.

[edited by: Edge at 12:55 pm (utc) on Mar. 23, 2008]

[vincevincevince]

A good agency will have measured the ROI and be able to show their client that the dollar incremental spend up to $X/month will bring in more incremental profit than the cost of acquisition.

i.e. that each extra $1 spent will bring in profits greater than $1, up to a certain limit at which saturation or other plateauing factors make the $1 spent only cover costs.

It is that point that a good agency should be keeping their clients precisely tracking and so they will always be in a position to tell their client that profits will go down if the budget is adjusted, upwards or downwards.

[farmboy]

There is some media play, that Ad agencies are backing off of purchasing Adwords. A WSJ "partner" posted an article about it.

I wonder what percentage of AdWords advertising is purchased through ad agencies?

Is an individual working from home managing ad campaigns for advertisers considered an ad agency?

FarmBoy