Digitas, Modernista and Mullen, all have serious stakes in GM’s ad business. And poor PHD, has a huge chunk of Chevrolet. JWT? It’s Ford baby. What happens to these agencies if the bailout doesn’t happen or even, if it does? One can’t expect the big three to continue to churn out the massive amount of ad spend we’re used to. Everyone has been speculating, but lets just focus on Modernista who has the Cadillac and Hummer brands.
Modernista has suffered some layoffs and truly, with GM being a reported 60-70% of their business, what can you expect? Oh… um, erm… more. If GM actually goes and with it their $850M in billings then what happens to Modernista who’s total billing are just a bit more than $900M? Does it shrink back into being a small shop with a soggy fire in its belly? Back to the warehouse office space from which they rocketed to the big leagues? Yes, they have a very cool website, but that isn’t going to pay the bills.
If you recall founders, Gary Koepke and Lance Jensen, went on record way back in July saying that there agencies future doesn’t lie in advertising. Koepke said:
“This business is no longer about just creating things. It’s about conceptualizing ideas – kind of like a think tank.”
Well, here’s your chance to prove your theory and test the mettle of your shop, Gary. Good luck. Seriously, good luck.