With a clientele dominated by trade shows, automotive clients and small to mid-sized local retailers, Integrated Advertising Network Inc. (IAN) was particularly vulnerable as the recession began its assault on the economy.
There was one wisp of good news, however: The Edina ad agency didn't have any banking clients.
The even better news is that founders Ian and Jenny Moquist are helping me fill this pesky white space with a yarn about how one small business, armed with a dab of creativity and the agility to make a rapid strategic pirouette, has minimized the economic impact.
The numbers: Despite the fact that their clients -- particularly auto dealers -- were among the first to feel the economic pressures, Advertising Network eked out a 1.4 percent increase in 2008 billings, to $7.2 million. Better yet, the gain came despite a 5 percent drop in fourth-quarter billings.
There's even a bright spot in the prospect that 2009 billings will be down 10 to 15 percent: As business slowed, particularly for the expensive media advertising that generates most of the Moquists' revenue, they refocused on promotions that reduced costs for their clients -- and carried higher profit margins for them.
In short, it's "a win-win situation," said Ian Moquist, 35. "They save money; we make more."
More important, business has improved in the past two months, said Jenny Moquist, 35, who projected that full-year billings will approach $6.5 million. The Edina agency serves area auto dealers, neighborhood restaurants and local home and garden centers and a variety of auto, boat, camping and other consumer shows.
The Moquists' survival strategy emerged as media advertising, which generated more than 80 percent of pre-recession billings, declined by upwards of 15 percent. They quickly refocused on other, previously less active segments of their full-service business, including branding and promotional materials, digital marketing and public relations. Among the strategies:
