Purchasing Transformation

A few months back, we highlighted some of the categories that were well suited for additional sourcing initiatives due to the financial downturn; one of the categories that we highlighted was marketing but as we all know nothing lasts forever.

Although marketing spend is down across the board; many marketing suppliers have been on their toes and adjusted their operations accordingly. Wise from the dot-com boom (crash) many advertising agencies have quickly adapted to the new era and are looking to the maturing internet marketing space to keep their revenues intact.

In a recent interview in Svenska Dagbladet (in Swedish); Göran Åkestam, founder and CEO of Åkestam Holst, one of Swedens largest advertising agencies is quoted saying:

“The (advertising) industry has become more cost aware. Rates have been lowered and we all had to get used to a different cost level. At the same time, many marketing functions have become more skilled, they are careful when cutting in marketing budgets since they know how fatal lack of sales are to their business.“

It goes to show that all categories have windows of opportunity that can be closed rather quickly. Whilst sourcing for marketing services still is viable; the quick feet of the (Swedish, in this case) advertising agencies have lessened the possibilities for easy savings. Acting now is hence of the essence.