Hiring freezes, agency cuts and reduced advertising campaign media budgets defined the competitive landscape for ad agencies in 2008. The currently struggling advertising environment is a result of the weak economy and marketer cutbacks, forcing ad agencies to implement broad reductions, from travel and expense restrictions to delaying/eliminating new projects to staff reductions. The most spectacular of the cost reduction methods have been employee terminations. Layoffs have permeated all aspects of the media industry. For example, since the recession began in December 2007, newspapers have cut 31,200 positions, radio 8,100 jobs, and magazines 4,500 jobs. The bright spots have been few and far between, with cable and Internet-media companies adding jobs since December 2007. The increase in job creation for cable and Internet-media companies notwithstanding, analysts expect revenue growth for the media industry as a whole to be negative through 2009.

By Darrell Woody

Gazette Staff Writer