Media economy
Readers: We're making it through this
By Louisa Ada Seltzer
Jun 22, 2009 - 8:41:30 AM

In some ways, media planners and buyers have had it better than many in media during this recession. Media departments, having learned their lesson in the last ad recession, did not make the mistake of piling on new workers once the ad economy got better, choosing to stay lean.

So when this ad recession began nearly two years ago, there wasn't much fat to cut. It was only well into the ad slowdown that the media people started getting axed.

But when it came it hurt just the same, and a recent Media Life poll reveals that the hurt continues. Yet it would appear media departments are still not suffering as much as other areas of media.

Media Life asked readers: With the ad economy in such rough shape, are you seeing jobs being cut at your agency?

The largest share, 44 percent, had seen major cuts in the last year.

But more than half of respondents report few or no job cuts. Some 26 percent report few job cuts, and the remaining 30 percent report no job cuts at all.

Respondents worked across a range of agencies, evenly divided among small, medium and large.

And morale isn't as bad as one might expect. Asked how they characterize morale at their agency, nearly half agreed with this statement: "Just so-so. Some of us are holding up better than others." Another 28 percent agreed with this statement: "Decent, all things considered. While we've seen some layoffs, there's no real sense that further jobs are at risk."

The smallest share, 4 percent, thought morale couldn't be better, agreeing with this statement: "High, in a word. Business is good and we are all too busy to think of much else but the work in front of us."

Just 21 percent reported that their fellow workers were really down, agreeing with this statement: "Terrible. People are nervous about coming to work lest they learn that they're being laid off that day."

Media buyers and planners say that for the most part business is still weak but that they do see signs, however slight, that the ad economy is on the mend.

Media Life asked whether readers had seen any signs of improvement, and the largest share, 43 percent, said no, agreeing that things are still flat, and 19 percent report that things have actually gotten worse.

Yet 33 percent report some improvement, agreeing with this statement: "Yes, but ever so slightly, and not enough to suggest a recovery is in sight."

And another 4 percent report a surge in business in the last month or so.

As for timing of the recovery when it does come, the largest share, 40 percent, see it coming in the first quarter of 2010, some six months away, and another 26 percent see it coming even later, in the second half of 2010.

Some 18 percent see it coming by the end of the year, while 7 percent see in coming no sooner than 2011, and another 9 percent don't see ad spending ever returning to previous levels.