‘Ghost recession’ agency survival guide: The top 10 actions to navigate a brutal 2024
According to agency growth advisor Chris Savage, founder at The Savage Company, Australia is in a ‘ghost recession’ with a third of agencies struggling to survive. Here, he offers ten tips to surviving.
These are the worst creative and communication agency trading conditions in 10 years (the first four months of Covid lockdowns excluded).
That’s what scores of agency leaders are telling me. Yet there’s little public commentary on how tough it really is for agencies, a third of whom are literally struggling to survive.
Marketer Andy Lark calls it a ‘ghost recession’. It’s in the room. Some see it, acknowledge it, face it. Others sense it. Many are oblivious, or choose to ignore.
Far out. Some of these comments are just so nasty and naive. For those with the snide comments, you clearly have absolutely no idea how to run a business. It’s just so easy to bring people down, than to actually grow something yourself. For someone who has been running a business for over 10 years, Chris’ wisdom and insights are invaluable. Things are tough out there – redundancies are coming. Maybe when more happen, there will be less snide remarks and more motivation to work out how to make things work in a tough environment.
“Productivity is dropping dramatically in our industry”
is it though? Pretty sweeping statement and the assertion is a lack of in person is the cause.
Most holdcos are in serious trouble (but I don’t speak to them) – riiiiight.
If you did, or tried harder to do so, you may have got to some better, more rounded analysis.
Fair point. I get my in sight on this from the publicly released financial results and also, well, I DO speak to some of them…and that’s what they (mostly) tell me!…. Chris
A few anonymous ‘experts’ having a crack here, Chris. Thank god they are not ‘helping’ lead my agency. We’d be broke in no time, with our culture also up the proverbial creek.
While there’s some merit with the hiring sentiment, I think this is an oversimplification of myriad challenges in today’s climate. The world’s moved on – you have to move with it. The ‘analyse’ doesn’t seem very scientific either. Pure lead generation.
Thanks. What are your thoughts on what agencies should do to rebound? Keen to hear and share. Chris
This advice is incredibly antiquated and reminds me of the old consultancy hustling days. So glad to be out of this crowded marketplace.
Pay people less, don’t let them have any flexibility despite saying that you do, claim that WFH equals low productivity, hassle your clients relentlessly etc. Why would anyone want to work in this environment?
Clients worth having are changing and won’t tolerate mindsets from the 90s.
AI isn’t flirting, it is already sleeping with your clients so get onboard.
Sage advice I’d say. Thanks Chris.
“Develop ‘bait’ – IP or insight – to offer in return for a 30 minute meeting.”
This strikes me as hustling (hassling) for a quick buck over building longer-term genuine sustainable growth. Sure agency leaders (who are insecure of their value prop) can crack the whip and run around like angry lunatics, but everyone’s going to want to leave them for doing so. Both clients and staff. Seems to me that the consultancy game needs to sell the notion that “agencies are getting taken for a ride”. A bit of a tired and disproven (for the most part) trope.
I’m also reading elsewhere that we’re back at the lifecycle stage of the disappearance of the CMO. Why might that be? Perhaps agencies should spend more time dedicated to solving the business challenges of their clients and not “calling in favours”. Value exchange needs to be a two-way street.
Thanks! It IS a crowded marketplace… that’s part of the issue.,..and agencies need to build a bridge to re-emerge with a new, updated, relevant and sustainable model. The bridge starts with staying in business and trading through a rough year. Urgent action is needed by many to be able to do so. What are your thoughts and ideas on what agencies that are finding it tough can do NOW to keep their businesses trading through and to buy the time to reinvent? Keen to share thinking . Chris