Agencies position for the rebound

More than any emerging channel or technological development, the most pervasive direct marketing trends in 2009 were shrinking marketing budgets and an ever-tightening belt across the agency landscape. Neither an agency’s size nor its capabilities offered shelter from the storm, as many direct agencies began the year with leaner staffs. Even digital leaders Razorfish and Digitas kicked off the year with more empty desks than they had in 2008.

Improvements in this year’s first quarter, though, have sparked a sense of cautious optimism in the industry. Global holding companies Havas and Publicis posted positive year-over-year earnings for the first quarter of this year, and agency executives are looking at 2010 as a recovery year.

“In 2010, we’re seeing a return to optimism and marketing budgets increasing over the course of the year,” says Bill Kanarick, chief strategy and marketing officer of interactive agency SapientNitro.

The revenues increases, though, are year-over-year in a year that was resoundingly tough on nearly every industry across the board. Paul Gunning, CEO of Tribal DDB, points out that the budgets are not returning to boom-year levels just yet.

Read full article at:  Agencies position for the rebound – DMNews.