Monday, July 26
It would be unwise to read too much into the performance of a small consultancy such as ours. Nevertheless the trends are unmistakable. All areas of our operation are picking up - including M&A work in the agency sector. This last one is very interesting, as it shows that the network agencies feel more confident about business prospects than they have for the last four years. My colleagues in London in this sector confirmed that they are seeing the same trends across Europe. Finally last week came news that Zenith Optimedia had raised its forecast for global spending on advertising for the third consecutive time.
Global factors affect the economy and reach down even to the smallest companies. It is a relief that we have a government that appears to be committed to broadly sensible economic policies. It should mean that business confidence will be higher in the Czech Republic than in Greece or Hungary. But the global outlook is far from certain, as can be seen from comments from US Federal Reserve Chairman, Ben Bernanke. I'm also worried that too many European governments are rushing to cut everything. If the German state in particular (and its employees) stops spending, that's bad news for Czech companies.
My best guess is therefore: the worst is over for our business and those we serve. Revenues will bounce back over the next few months. However we may then find that in 2011 there is no further growth, unless the world clearly shows that the crisis is finally over. The days of hiring freezes should be past, but few companies will actually expand. Agencies will expand if they win business. Talented people can expect to develop their careers, both by moving upwards within companies, and by setting up their own businesses, as we are seeing in the agency sector.
In other words, it may be safe to breathe a sigh of relief!
Were you hoping for a meerkat report? Visit their website; it looks like the final part of the campaign will launch soon. By the way, I really ought to mention that the campaign is the work of the London office of VCCP.