Advertising agencies, pressured by a tough year in 2009 and a media landscape revolutionized by the Internet, face more travail in 2010, as competition depresses fees and marketers rework their agency rosters, according to a story in the Wall Street Journal.
Advertising spending is likely to have fallen 13 percent this year and rise just 1 percent in 2010, according to a story in the Wall Street Journal, which says agencies face continued tough times in the year ahead.
Written by Suzanne Vranica the story says agencies have cut costs significantly, but also face reduced fees as they compete with one another for business.
Also challenging Madison Avenue is the number of big marketers switching agencies and the prospect of increased regulation from Washington.
WSJ Online subscribers may read the full story here.