Are ad agencies like financial institutions?

Marketing is pretty similar to finance, it is a staff function which does not contribute directly to revenue or to product development or even to design. Marketeers main job is to tell a story about a product and make sure that the plot, characters and arc of story are coherent. How is this like Finance? Simply Finance has a similar function in terms of what it delivers to a business. A controlling function to ensure that price is right and other functions are run as efficiently as possible. They allocate capital between different functions of a business.

At a macro level Ad Agencies and Financial Institutions perform similar functions for businesses, and as has happened with all aspects of business in the last decade, the services being provided have become unmoored for any real value addition. This piece in the FT is ostensibly about rise of online media, but reality is that the go-go years have ended and advertising will not command the premiums that it once did.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: