After nearly 60 years, S.C.Johnson (Wisconsin based, maker of products such as Windex, Glade and Ziploc bags) just fired Chicago’s second largest advertising agency, DraftFCB and the estimated $1 billion global marketing budget was moved to two local agencies – Energy BBDO and Ogilvy & Mather. Rich Stoddart, president of – Leo Burnett, won’t call it a giant win, more like a net zero since the business stays in Chicago. Leo Burnett North America with 1,600 employees and accounts such as Kellog’s, Samsung, Proctor & Gamble and Allstate (which got a lot of attention with the “Mayhem” spots) and Travelocity, is by far the largest agency in Chicago.
The Chicago advertising industry suffers from a dated perception of being a nuts-and-bolts market specializing in packaged goods, according to the Chicago Tribune. Also taking an extra hard hit by the recession, all symbolized by the closing down of J.Walter Thompsons local shop in 2009. But lately, this has all changed due to an influx of new talents and the booming new digital scene staged by national reputable firms such as Razorfish, Digitas and Digital Kitchen.
Depending on criteria, Chicago is the second or third city of advertising. According to the American Association of Advertising Agencies, LA had in 2009 1,004 agencies and 13,962 employees, topping Chicago’s 892 agencies and 11,794 employees. And they have started to hire again!
Exemplified by Cramer-Krasselt, Chicago’s largest independent ad agency, has grown more than 50 percent the last six years, billing $998 million in 2010 and employs 548 people.
Things are starting to look brighter for the Chicago advertising industry, attracting new creative talents and stepping up on the digital scene!
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