jackmyers.com
Free ContentFor Members Only
HOME MEDIABIZBLOGGERS.com WOMEN in MEDIA HOOKED UP MEMBERSHIP INFO MEMBER COMPANIES MEDIA BUSINESS REPORT ECONOMIC FORECASTS RESEARCH
Home > JackMyersThinkTank > The Urgency Conundrum: Battling Economic Forces While Building for the Future

The Urgency Conundrum: Battling Economic Forces While Building for the Future

December 1, 2008

Published: December 1, 2008 at 04:14 AM GMT
Last Updated: December 1, 2008 at 04:14 AM GMT

In December 1862, President Abraham Lincoln wrote in his second annual message to Congress:

"The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so must we think anew, and act anew. We must disenthrall ourselves, and then we shall save our country."

Nearly 150 years later Lincoln's words are equally relevant not only to the state of the nation but to the state of the media and advertising business. It's perhaps inappropriate to compare the trials and tribulations of the media industry with the confronting realities faced by President-elect Barack Obama and those of President Lincoln during the Civil War. But we cannot help but connect Presidential actions and decisions to our own day-to-day challenges. The "dogmas of the quiet past" that offer comfort to media and advertising executives will be proven inadequate to the stormy present and future we face. The media and advertising business is struggling with both a cyclical economic downturn and a systemic overhaul of the industry.

Supply and demand economics are shifting from a marketplace with a history of great demand and limited supply to an oversupplied market with shriveling demand. Audience reach can be aggregated through myriad media sources at steadily declining costs-per-thousand. The idea that marketers will increase ad spending in economically depressed times is as outdated as the idea that Americans will go further into debt to sustain their lifestyles and spending patterns. And while marketers might very well rely on traditional media in troubled times, what happens as advertising executives approach next year's budget decisions with their businesses still in a free fall? Where will they turn?

Marketers and media companies are troubled and faced with a conundrum. How do you deal with the realities of a depressed economy and falling sales? How can management both meet short-term revenue demands and invest in the future? How do we "disenthrall ourselves" from the models and business demands of the past when we depend on these models for our day-to-day survival? And how can we possibly invest in new strategies and approaches when there is not sufficient budget to support the barest minimum of what we require day-to-day to meet our most basic goals?

Managers must define and implement two separate and distinct strategies.

First and foremost is to identify the survival tactics required to maintain revenues and profitability for the next 24 to 36 months. At the same time, you must design a vision for the future and begin putting in place the foundation on which to build that vision.

Companies emerge from recessions with visionary products and services that meet their customers' future needs, not with products and services that meet the needs and business models of the past. Yet you cannot escape the reality that investing in the future is unlikely to be justified in the current economy.

So the fundamental question is how can your business invest in the future when you cannot sufficiently invest in meeting your immediate business requirements? There are a few answers.

  • First, reevaluate your immediate business goals. Whose goals are they – those of management and customers or those of Wall Street? If your company's goals are being defined by Wall Street, reassess them and if they are unrealistic in the face of the economic downturn, redefine them and be as conservative as possible.
  • Build your 24-month business plan around dedication to meeting the core short-term business needs of your most important customers. What are the core assets and tools required to deliver on your customers' needs? Prioritize these assets and analyze their costs in the context of their value.
  • Which of these core assets are also consistent with your long-term business vision and therefore should be maintained and which can be reduced or eliminated?
  • Do you have a long-term vision?
  • What new investments can be made that both contribute to your short-term goals and serve as building blocks for your future?
  • Do you have the dual-management team in place to maximize immediate revenues and to put in place the foundation for your future? The skills and competencies are usually very different.
  • Are you investing in cost-saving and revenue-generating technology and partnerships that can support short-term sales goals and enable you to shift resources to long-term strategic needs?

For at least two decades I have asked the same question of executives: "How much of your business today is built around traditional media pricing and research models vs. how much of your business is based on innovation, ideation and differentiation?" The typical response, 90% vs. 10%, has been consistent for the past 20-years and remains true even today. The 90/10 model is acceptable for media and marketers who follow the Wal-Mart model of every day low pricing, but even the dynamics around a sustained focus on traditional business rules are changing – with increased dependence on technology to deliver cost efficiencies. And traditional models are no longer acceptable for companies that seek to generate premium value for their products and services. Immediate investment with partners that represent the future – partners such as TiVo and a handful of others – will prepare you for 2011 and beyond. If your long-term vision is to shift from 90/10 to 50/50 or 60/40, you need custom solutions that enable you to transition from here to there whilesuccessfully managing through this depressed economy.

Jack Myers consults with media companies, agencies and marketers on defining business solutions and implementing visionary business models. He can be contacted at jm@jackmyers.com.

add this social bookmark link

6 Comments
discount true religion jeans - July 8, 2011

Look at my discount true religion jeans I purchase from a
true religion jeans on sale store.It's really so comfortable,you can buy them.
discount true religion jeans - July 8, 2011

Look at my discount true religion jeans I purchase from a
true religion jeans on sale store.It's really so comfortable,you can buy them.
watch - July 14, 2011
iwc watch watches replica neighborhood speakeasy!Go all out fake watches sits atop a solid silver tone stainless steel case replica watch time Lots of websites that offer them for sale.
watch - July 14, 2011
iwc watch watches replica neighborhood speakeasy!Go all out fake watches sits atop a solid silver tone stainless steel case replica watch time Lots of websites that offer them for sale.
watch - July 14, 2011
iwc watch watches replica neighborhood speakeasy!Go all out fake watches sits atop a solid silver tone stainless steel case replica watch time Lots of websites that offer them for sale.
P90x Workout - July 21, 2011

The article is very good, I like it very much. I will keep your new article.P90x Workout
Austin - July 22, 2011
Welcome to GHD Hair Australia online store. We are professional GHD Hair Straightener Supplier, and we sepcialize in offering cheap and high quality GHD Hair Straighteners for every customer. In our GHD Australia shop, you will find kinds of GHD Hair Straightenershair straighteners cheap, such as GHD IV Pink, GHD IV Rare, GHD IV Gold and so on. Because of some friendly and advanced features, GHD Hair Stragihteners have replaced the older version of hair tongs and earned the praises of some famous styling professionals around the world. By creating interesting patterns with your personal hair straightener, you can easily get a cool and funky hairdo. Cater for the trendy youth culturehair straighteners cheap, GHD Straighteners are avaiable in creating ringlets, frizzy, straight, curls etc.
James - July 22, 2011
with ceramic and tourmaline straightening plates, GHD straighteners can get heated quickly. They come with an international electricity adjustment system that helps a user to get its benefits anywhere. They are really slim and easy to grip to get the ultimate servicecheap ghd. Now, we offer a mass of discount and Cheap GHD Hair Straighteners in our GHD Hair Straightener Australia store, free shipping and non sale tax! If you have any question about GHD Hair Straightener, sincerely welcome you to contact usghdhair, Our GHD Australia customer service will get you the most attentive service.
Kyle - July 22, 2011
material will possibly be the best option to create wweddingdresses. This framework is nicely to make an make an effort to do and create a wedding celebration attire appears wonderful. picking the appropriate sort of composed content is definitely an crucial step, if somebody does not choose out the appropriate product for buy wedding dresses, Picking out the most ideal bridal stuff will possibly be the principal essential to acquiring beneficial appears within wedding shop. on top of that to bridal stuff, whole body silk product on top of that to bad use offered that cleanse wedding celebration dresses. These silk sheets are on top of that toward exquisite and extensive find make wedding celebration dresses. many people
Kyle - July 22, 2011
material will possibly be the best option to create wweddingdresses. This framework is nicely to make an make an effort to do and create a wedding celebration attire appears wonderful. picking the appropriate sort of composed content is definitely an crucial step, if somebody does not choose out the appropriate product for buy wedding dresses, Picking out the most ideal bridal stuff will possibly be the principal essential to acquiring beneficial appears within wedding shop. on top of that to bridal stuff, whole body silk product on top of that to bad use offered that cleanse wedding celebration dresses. These silk sheets are on top of that toward exquisite and extensive find make wedding celebration dresses. many people
Christian - July 22, 2011

nike shox was made within your potent romantic romantic romantic romantic relationship in between the West and Nike. we are within of the placement to only need that Nike will continually sustain out with each and every and every solitary apart away from your mixed tonal coloring schemes and render us a superb provide even additional revolutionary features. mens nike shox shoes are mainly applicable to everyone, because of the comfortable, stylish design and good protection performance.
shoes buy online
exquisite design and high quality are very perfect for you. Excellent is all I can say. and will continue to shop Cheap Jordans Shoes.

Benjamin - July 22, 2011

cheap nike shox and NBA jerseys , nike air max 2011 purchase for men’s working shoes do not have mesh or leather-based apart away from your avenue belonging within for the course inside the upper.In short, really many different various people these times these occasions consist of me like cheap Nike , like its design, like its unusual, a remarkable provide extra like its consuming drinking water resistant function, it could possibly properly possibly nicely possibly provide a remarkable provide extra comfort for our standard method to implies of life-style or exercise. nike shox is stunning shoes. Its organically acquire all organically acquire attractiveness is in its usefulness and sensible applicability. It is worth to order.
MP4 Converter - August 8, 2011
I am very happy to read your blog.Thank you for sharing this article.It is great! Thanks for sharing this nice post.I will keep your article in my idea.MP4 Converter
DVD Ripper
MP4 Converter - August 8, 2011
I am very happy to read your blog.Thank you for sharing this article.It is great! Thanks for sharing this nice post.I will keep your article in my idea.dvd converter
MPEG4 to MP4 Converter
DVD Ripper - August 8, 2011

Nice post.Thank you for taking the time to publish this information very useful!I’m still waiting for some interesting thoughts from your side in your next post thanks
dvd ripper freeware
Video Converter
ray ban aviator - August 10, 2011
It is my pleasure to read this page, ray ban rb3025. I look forward to reading more. rb3025
Post a Comment










Commentary Archives

August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013

See all Archived Material

MediaBizBloggers.com

So, just for fun and, in honor of Labor Day (and people who work for a living) here is a list of buzzwords, biz speak and hipster droppings that should be banned from every business meeting forevermore.

Read More

Why should humans own all the world’s copyrights? The question is prompted by a photograph that’s made worldwide news. In Indonesia, a female crested black macaque monkey picked up a camera owned by photographer David Slater. I won’t focus much on the story of the monkey and her selfie because that topic has already been well-discussed in the media. Yet the story sets the table for more intriguing and ultimately more important issues. A brief recap of the story of the monkey and the selfie follows. The monkey did what a lot of us would do with a camera. She took selfies.

Read More
Click Here for Membership Information
Contact Us  |  Editorial Overview and Guidelines |  Site Map  |  Terms of Use  |  Privacy Policy  |  RSS Feeds