LEADER: Adapt or suffer from client spending shift

<p>Asia is finally feeling the ill wind which wreaked havoc on the US </p><p>on September 11, shaking the confidence that Americans once had in their </p><p>invulnerability like never before. </p><p><BR><BR> </p><p>News of job cuts across the regional media and marketing spectrum are </p><p>now flowing in thick and fast. At any time, redundancies are </p><p>painful. </p><p><BR><BR> </p><p>But it's more so today when people's psyche - and their confidence as </p><p>consumers - has been so severely battered. The talk of returning to </p><p>normal - to fly, shop and go about the routine of everyday life - just </p><p>seems a little too difficult this time around, especially with news at </p><p>press-time that the US has finally retaliated. </p><p><BR><BR> </p><p>Brutal as it may sound, the thinning of agency ranks is one sign that </p><p>the region is acting to redress the over-capacity and bloated payrolls </p><p>which had been allowed to occur during the boom years before 1997. All </p><p>the trimming of fat that occured during the late 90s financial crisis </p><p>has to some extent helped agencies here. This time around, the </p><p>cost-cutting appears to be far less savage, although the culling has hit </p><p>one or two of the international networked agencies much harder than </p><p>most. </p><p><BR><BR> </p><p>What is encouraging in this dark hour is that anecdotal evidence </p><p>suggests that advertisers are cautious but, unlike the late 90s </p><p>upheavals, have not turned off the tap completely. They are still </p><p>spending, but they are also demanding a lot more - from ideas to </p><p>commitment - from their agencies. </p><p><BR><BR> </p><p>Indeed, it's more than just economic blues or the September 11 </p><p>devastation which is behind agencies' woes. The bigger issue is the </p><p>fundamental shift away from TV-centric campaigns to efforts which </p><p>require agencies to ensure advertisers get a decent return on the </p><p>dollar. Agencies who survive this shake-up will be the ones who adapt to </p><p>the new environment. In Asia, the path is clear. Agencies need to </p><p>improve their core competencies, and in doing so morph into specialists, </p><p>owning categories in which they have an edge in terms of knowledge, </p><p>understanding and best practices. </p><p><BR><BR> </p>