IQ News: Dot-Coms Re-Evaluate Ad Spending Habits

Like kids who have already spent their million-dollar allowances, many dot-com startups have begun rethinking their spending–specifically their advertising and marketing spending–as venture dollars dry up.
“We’ve seen it all over the place,” said Carl Johnson, president and CEO of TBWA/Chiat/Day in New York, “not just from current clients, but from the tone of new business clients.”
Bill Katz, president and co-CEO of BBDO New York, agreed, saying, “What I’m finding is yes, the dot-coms are being pressed for more performance by their venture capitalists; yes, they’re being pressed for profit, or at least to make their numbers–and that is having an effect on how they spend their marketing dollars.”
Typically, he said, “more money is being put into direct marketing because [clients] are convinced and have been convinced that direct marketing will get them that kind of expediate return, which is directly in line with what their backers are asking them for.”
But...