We've all seen this movie before: Small agency has seasonal lag in revenues and guts staff. Morale nosedives. The agency balance sheet is not just affected by revenue loss, but by the curse of 'bad karma', which in our business, can be even harder to overcome than depleted cash reserves.
We all know the agency business is rough these days. But there are still a few people happily living the Mad Men life, completely immune to hazards of the trade such as procurement, endless spec pitches, and continuous assaults on one's self-esteem.
For the past few years, analysts have been looking carefully at holding companies' migration to digital as an indicator of future growth. But the big problem with agencies today is their business model.
The "it" of course is media. If you are a great brand today, you get a lot of "free" earned media and a lot of activity on your owned media assets as well.