Dear Friends,

As 2007 draws to an end, we have seen the financial markets gyrate from “record high" to some of the “biggest single-day drops" all in the matter of a few weeks.

Clearly the meltdown of the real estate sector, followed by the meltdown of banks and brokerage firms stuck with “sub-prime" write-offs, has begun to cool down things on the hiring front.

However, there are two categories in which we do not see growth abating: 1) Internet/digital marketing and advertising, and 2) healthcare advertising and CRM initiatives.

Internet/Digital Marketing & Advertising

Indications of the shift to digital abound:

The IAB and a market research firm, eMarketer, recently announced online advertising budgets increased by 27% in 2007, continuing a five-year trend of compounded 20+% annual growth rates. Click here to read the article.

A recent issue of Direct Magazine highlighted IBM’s Global Business Services report titled, “The End of Advertising the Way We Know It," which predicts a major shift away from traditional advertising to interactive ad formats in the next five years.

Several senior advertising agency clients I have spoken with recently confirm this trend. Many CEOs and CMOs, having seen the measurable results produced by taking their online advertising to 20-25% of the mix, are asking their agencies, “What would happen if we just go immediately to 60-65% online?" So clients are getting there quickly and are shifting budgets away from newspapers and television, where advertising revenue is declining.

What this means for marketing professionals (at all levels) is, if you are not already doing so, you must focus significant energies on making your personal brand relevant in the digital and mobile marketing worlds. Instead of reaching consumers through television advertising, advertisers will be reaching consumers online through social networks (such as Facebook).

Another interesting piece of news is Rupert Murdoch’s recent announcement that he plans to change WSJ.com to a free subscription format. Rupert knows he can monetize WSJ.com better through advertising revenues targeting 10-15 million global B2B subscribers than with the present paid subscription model, which has 1 million paid subscribers.

So online and mobile advertising are the advertising growth frontiers for the next 5-10 years. (For more information on how this affects you, see my article from our August ezine: “Digitally Deficient CMOs Need Not Apply.")

Healthcare and Medical Advertising

Healthcare and medical advertising are also growth areas. However, this category is not without its significant challenges. While pharmaceutical marketers are rushing to bring new drugs to market in advance of the 2008 election, many continue to be plagued by losses and crises related to drug recalls and class action suits over side effects from drugs introduced into the marketplace without proper long-term efficacy studies. Having successfully tackled DTC advertising, pharmaceutical and medical device marketers are committing large resources to build and expand CRM programs aimed at both consumers and physicians. These initiatives have created significant growth among the 5-10 leading medical advertising agencies, which are experiencing 30%+ annual growth rates in new business.

While healthcare costs and the cost of health insurance continue to spiral out of control, there is one counterbalancing factor that will continue to make healthcare and wellness (in all forms) a growth category for the next few decades. That factor is the “Baby Boom" generation, with 78 million+ members between the ages of 44 and 60. The “Baby Boom" generation is the wealthiest generation yet. Just like they rebelled in the ’60s, Boomers will indulge in all forms of healthcare and wellness options, including cosmetic medical and dental procedures.

I recently moderated a panel discussion on “Marketing To Boomers;" this is a segment every healthcare and financial services company is targeting. AARP delivered some insightful research on the “Power of Women" in this sector, and the types of help and support they need. Women are the primary decision makers in healthcare issues for their families, and they are increasingly playing a major role in financial services decisions, as well. Yet with the high divorce rates, many Boomer women lack the financial resources to retire comfortably.

Overall, we expect to see a global economy that continues to grow throughout 2008, at least at a 3-4% growth rate, and this should continue to provide an economy in which there will be new job opportunities.

This month, we conclude our series on “Managing Your Personal Brand." Lorraine White, our Chief Coaching and Chief People Officer is taking the AMA Presidents Course as this issue goes to press, and we intend to attend other conferences and training sessions in 2008, to keep ourselves abreast of “best practices" in talent acquisition and development.

We wish all of our clients, colleagues and friends, a joyous, happy and safe end of 2007—and a prosperous New Year filled with new opportunities!

Happy Holidays!

Jeff Gundersen, CEO
Executive Connections LLC
334 Under Mountain Road
P.O. Box 265
Salisbury CT 06068
Executive Search, Coaching & Consulting

jgundersen@executiveconnects.com
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