Advertising companies brace for downturn as coronavirus rattles ad spending

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As the impact of the pandemic hits businesses and their ad spend, advertising holding companies are preparing for lessened demand and some are telling their employees to expect more staff cuts and furloughs.

CEO John Wren wrote that the pandemic has had an impact on the economy, clients' businesses, "and in turn, on ours." He wrote that the company has solidified internal measures to meet the changing needs of its clients. The holding company operates agencies across the advertising world, including BBDO, DDB and TBWA.

"Regrettably, this will include furloughs and staff reductions across many of our agencies," Wren wrote. "We are doing everything we can to limit staff reductions, and to take care of those who are affected."Wren said agencies will use furloughs rather than permanent reduction "so we can bring people back if, and when, conditions improve and client demand recovers.

Wren also wrote that the company will move people into areas of business that are growing, like Omnicom Health Group. He said the company's executive leadership team are reducing salaries by a third, while Wren is waiving 100% of his salary through the end of September. The company "with few exceptions" has stopped new hires, frozen salaries and has reduced freelancers. It also suspended its share repurchase program.

 

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Yeah.. no more harassing or neverending pubs? Enough of creating fake needs.

Including FB and Google?

FYI $GOOG & $FB are advertising companies

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