Since the second quarter of 2007, the first quarter for which we can create four-quarter inflation-adjusted moving totals, ad agency revenues are up more than 13%. Publishing industries have note fared well at all.
In recent weeks, readers have asked for industry demographics and some prognostication about them. The data tables are below. But first, some information about the data and where they come from. Get a strong coffee.
The major news in the data update is that employment in advertising agencies surpassed that of the printing industry in July 2013. For 2013, printing employment was down by -12,600 (-2.8%). The biggest change was in employees outside of production who were -8,400 of that decline (-5.7%). Graphic design employment was down slightly for the year, but these data do not include freelancers, which are an essential part of that business. Inside the advertising agency employment data are public relations employees, the main area of employment growth in this sector.
The Department of Commerce released December 2013 and revised November data. December shipments were $6.271B (-3.7% vs. Dec. 2012). On a current dollar basis, the total for the year was $77.6B, -3.8%. After adjusting for inflation using the Consumer Price Index, shipments were down -5.1%. The chart below shows current dollar and inflation-adjusted shipments starting with 2007
This chart shows the inflation-adjusted revenue trends for selected content-creation businesses. Note how advertising revenues have increased despite the declines in the revenues to publishers. Agencies have shifted much of their efforts to developing “earned media” (a/k/a search engines, social media, e-marketing and numerous other digital formats), and the production of it.
Last time, Dr. Joe explained why business development is rising as a critical function in print organizations. The nature of selling is changing just as the nature of print in the communications mix is changing. And no, cold-calling has nothing to do with Winter temperatures.
In Part One of this two-part column, Dr. Joe explains how the changing dynamics in the printing industry are dynamically changing the sales process. It used to be that a sales call didn't need to start with explaining print-everyone already knew what it was, and the needed it. Not so much today…successful businesses are increasingly turning to business development practices. This is much more than sales lead generation and that will be the topic of Part Two.
There was no uncertainty about the election results, but there was plenty of whining about "uncertainty" for months and months prior to the election. Now that the election is over, is there really any less "uncertainty"? Why do executives get the big bucks? To make decisions when there's uncertainty, real uncertainty. Dr. Joe explains what's uncertain and what's not... at least we think he does. Guess you'll have to read it to be sure.
You know you should worry when Dr. Joe uses phrases like "simultaneous critical mass." Then we find out that he thinks that data talks to him. His frugal ways are evident as he delights in the prospect of free broadband. Then there are boats and planes, too. It might be worth reading to make sure the next wave of innovation to hit the market is not one that means "goodbye" for your business.
Dr. Joe is focused on denial but not in a myopic way. That may make sense once you dig into the column. Or like a lot of his columns, it may drive you to muttering all day. CNN claims that the USPS is being bailed out by election spending. That is, if you believe a decrease is an increase. And much more…
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