Re: UKNM: Recession will hit in 1999

[James Bruce]

For my tuppenny I agree with you. Admittedly I work in a very narrow sector

but my clients all see this 'new stuff' as a bit exotic, and even though

[perhaps because ;-)] some of them are huge, can't seem to get their heads

around it.


"All a bit confusing what, let's go to print." I hear them cry!


Oooh...makes my gluteus maximus hurt!


James Bruce

Managing Director

WebWeaver Media Construction Ltd.

Tel: 0171 379 5950

Fax: 0171 240 9096


-----Original Message-----

From: jim smith <

jimpsychedelic [dot] org

>

To:

uk-netmarketingchinwag [dot] com

 <

uk-netmarketingchinwag [dot] com

>

Date: 16 December 1998 10:24

Subject: Re: UKNM: Recession will hit in 1999




>Roll on the recession?


On the contrary. The Uk web industry is poised at the same position as the

direct marketing industry was in the late 80s/early 90s. Everyone knew the

post-housing boom recession was coming but the DM agencies thought they

were immune because they were accountable and more cost effective.


The flaw in the reasoning was that while a client can find a good reason to

slash above-the-line expenditure from a paltry �10 million a year to, say,

a measly �6 million - after all, all the marketing textbooks say you have

to keep advertising in a recession or lose market share when the upturn

comes - it becomes incredibly hard to get sign off on even a �100K project

if it has the scary words "new expenditure" attached to it.


What's a more likely scenario is that we'll see yet more contra-deal mania,

with everyone trying to get something out of everyone else for nothing

(here, have some content for a banner), while the investors get screwed.

The sooner the industry matures to the point where people actually pay for

tangible assets and ROI the better. It's still a long way off.


Meanwhile, UK agencies have only just got out of the habit of partying like

the late lamented Evans Hunt Scott.


And what happened to direct marketing? The Americans came and bought it

lock stock and barrel and made it a far duller and much more accountable

place. They even bought the trade association, which takes some chutzpah.



Meanwhile, the freeloaders moved to new media...



I'm all in favour of New Media parties where the booze runs out after an

hour. Make some money first.


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