Emerging Trends in Advertising: New York's Resurgence and the Rise of AI
New York's Resurgence as the Advertising Mecca
According to an article published earlier this month in Ad Age, the industry bible, there are some noticeable trends in the advertising world with agencies. It’s too soon to determine whether those trends are positive, negative, or even enduring, but they certainly are worth examining and assessing for all clients.
The article reports many agencies are beating a hasty retreat back to the advertising epicenter in New York. “New York once again seems to be the mecca for the advertising industry,’’ the report says. One reason some agencies might be flocking back to the Big Apple is reduced rent. A May report from the New York City comptroller’s office reports rents have declined 8% since the start of the pandemic.
The Ad Age article also cited the increasing population of creative and advertising talent back in New York and an uptick in professionals opening their agencies. In addition, some major companies and their agencies are consolidating leadership in New York.
Another trend, the article reports, is the increasing number of jobs being outsourced to places such as India and South America. Artificial intelligence is also influencing the industry, with some creative content produced with alarming alacrity.
Navigating the Shifting Landscape: Why Experience and Relationships Still Matter in Advertising
What’s important to keep in mind for clients, however, is that these trends might not benefit their advertising game plan. A winning and strategic formula is rooted in experience and relationships, which can only be developed with a cohesive long-term plan.
New York City certainly has its advantages for some agencies and advertisers. The bigger advantages, however, come from working with an agency that has an experienced team working on the account that knows the objectives, messaging, and relevant media. Communication drives advertising success, and it helps when you have an agency partner who picks up the phone, responds to the email, and knows the client inside and out.
In addition, relationships are often the biggest driver in helping advertisers get the biggest bang for their advertising buck. Those relationships take years to develop to their full potential and are the building block behind any successful advertising strategy. An agency that knows – and understands – the plan also has the flexibility to make changes mid-stream. AI won’t do that. Neither will the operator abroad.
Outsourcing overseas and artificial intelligence can have a place in any advertising strategy. Advertising, however, is a business built on communicating with and reaching people. Any detail that detracts from that human connection also reduces the chance for advertising success. While there might be some cost advantages, it’s also important to realize the benefits of institutional knowledge and interpersonal relationships.
It’s too soon to tell exactly how the agency trends will play out. But for advertisers, the smart play is always to work with an experienced and trusted team, wherever they are located.
Advertising intelligence is not limited to New York, and advertisers don’t have to play in a large sandbox to build a beautiful castle.
