Outsourcing Creativity: Madison Avenue Making Out Like Bandits

When American companies outsource, the work doesn't all go overseas. Sometimes, especially for specialized skill in advertising, the work stays right here in the United States.

Currently, creative agencies like WPP's Mindshare, BBDO, and the Interpublic Group, are making out like bandits from this type of work, reports the New York Post. These companies seem to be thriving, at least in part, due to this business model. In 2010, Mindshare hired 200 new people and Interpublic Group's revenues grew about 10 percent.

Corporate executives at many companies see signs of a recovery but don't necessarliy trust these signs enough to beef-up their own internal staffs. This is part of the reason for the pent up demand for marketing initiatives, particularly related to the online space. That means the focus is shifting from primarily one of cost control to initiatives for building platforms for growth.

Therefore, many companies are turning to Madison Avenue ad agencies to do much of work for them. That has put those vendors (the ones taking on the outsourced tasks), in a position of strength. For the first time in years it seems, they have a real position of advantage when it comes to negotiating the terms and conditions of the projects they work on. These current trends in the market seem to be making the advertising industry, as a whole, more profitable.