Rough Seas Ahead?

Talk to a digital agency CEO about the coming economic woes and you'll hear the same mantra: Traditional advertising will suffer much more in a downturn, mostly because of the comparatively lower cost and higher measurability of interactive, and the fact consumers continue to migrate from traditional channels to digital outlets. Yet underneath the surface-level cheeriness, most admit fortunes could change on a dime in the next 12 months -- who would have predicted the Wall Street collapse just a year ago? -- and are preparing contingency plans.

There are already signs that interactive has been hit. Clark Kokich, CEO of Microsoft-owned Avenue A/Razorfish, said the shop has felt the effects of the turbulence on Wall Street with its financial services clients and in consumer spending with auto clients like Ford. Across the board, he said, clients are scrutinizing spending much more closely and making cuts to experimental programs.

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