Dan Medrea, 37, who was brought from Ukraine one year ago to support the Romanian operations of Grey Worldwide, says agencies' profit has been under pressure this year as the costs of workforce, the main asset of this business, has not dropped at the same pace as the average cost of the advertising market.
"The market is where we had expected it to be, it fell by 10% from 2009. 2011 is a year when we hope the market stops falling, and the level should be flat from 2010. Next year there will be pressures generated by the dwindling purchasing power and the economy's not showing any signs of recovery. Agencies will pay more attention to their own profits, which they have neglected," specifies Medrea.
As for the business of Grey Worldwide Romania, which has been operating as Grey-G2 as of this year, after having won all its accounts in 2010 through its consumer activation unit G2, Medrea says "(...) We're further developing the business but we'll also seek to consolidate profit."
According to National Trade Registry Office, Grey Worldwide Romania registered 8.5m-euro turnover in 2009 amid 480,000-euro profit against 2008, when it reached 18.1m euros with an 810,000-euro profit. The agency currently has 101 employees.
At this year's ADOR festival, Grey won the highest number of awards among advertising agencies.
Dan Medrea, 37, who was brought from Ukraine one year ago to support the Romanian operations of Grey Worldwide, says agencies' profit has been under pressure this year as the costs of workforce, the main asset of this business, has not dropped at the same pace as the average cost of the advertising market.
"The market is where we had expected it to be, it fell by 10% from 2009. 2011 is a year when we hope the market stops falling, and the level should be flat from 2010. Next year there will be pressures generated b
