• Adweek, Monday, October 20, 2008 11:45 AM

CEOs of digital agencies are all sounding a similar theme right now to the press: Traditional advertising could be hit hard thanks to the economic morass, but digital advertising will be spared because of its lower cost and measurability.

But behind closed doors, those same CEOs are building contingency plans in case they're predictions don't quite hold up. For example, iCrossing CEO Don Scales presented three separate outlooks to his board of directors last week, and he included ways the company should cut back, such as slashing its trade-show marketing budgets, or toning down the holiday party.

That company and AvenueA/Razorfish have already decreased new hires, which could lead to a flip in a labor market where digital talent has been in short supply. "The scary thing is not knowing when the other shoe drops," said Daniel Stein, CEO of EVB, a 75-person shop backed by the Omnicom Group. "That's why there's so much anxiety out there now."

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