Around the Net
GM's Slashes Agency Fees, Who's Next?
- Advertising Age, Monday, August 11, 2008 9:30 AM
News that General Motors, the country's No. 4 advertiser, plans to cut ad and media agency fees by as much as 20% is prompting widespread fear that others will follow.
Paired
with an austerity push by Procter & Gamble Co. and Unilever, the GM slashing suggests that the recession may be tougher than anticipated for agencies. Ad execs are betting that clients in similarly
stressed industries, such as financial services or airlines, will squeeze fees and cut spending.
"There's basically no organic growth out there," says Peter Krivkovich, CEO of
Cramer-Krasselt, who adds he has not yet seen any of his clients attempt to cut fees.
