Coopers & Lybrand Advertising Forecasts

A shift of power from advertising agencies to their clients will take place during the 1990s, according to Coopers & Lybrand’s latest report ‘The Advertising Industry – An Examination’.

The report suggests that agencies which present the extravagant image, common in the 1980s, will lose clients to those emphasising professionalism and cost-effectiveness.

It is predicted agencies will experience a growth of just 2.8% in real terms this year, rising to 4% next year.

Coopers & Lybrand highlight a number of guidelines agencies should follow to ensure success:

* Re-evaluate international options, setting up overseas networks only where rewards will be commensurate with additional costs involved.

* Review range of services.

* Re-assess pricing structure with an emphasis on flexibility and value for money.

* Control cost base and ensure systems are capable of providing increasingly sophisticated information which will be required in the future.

Coopers & Lybrand: 071 454 4724