The last couple of weeks have reduced any doubt of the severity of the recession for the Swedish advertising agencies. 

Large agencies are downsizing. Some quick research will tell you that most large network agencies have been running in the red for some time. How much is difficult to say, because of tax tricks and transfer pricing. 

Many smaller agencies have tragically gone bankrupt. These have been the agencies that have barely managed to turn profits during the last four years. 

Some agencies continue to grow. Some through hard sales. Differentiated products is another. Price dumping is one strategy that has been working well for the market share of one large agency. The last recession had a winner: Ogilvy & Mather, because of their ability to present an accountable product.

Well-balanced client portfolios and sound long-term finances is a hygiene factor for surviving the coming two years. A no-brainer, yet the short-termism in the ad industry is both apparent and striking. General profit margins in the industry are definitely too low for building long-term reserves. 

There are less focus on creative prices, with significantly less entries to the prestigious Guldägget awards.

Planners are getting fired as a quick way to slash overhead. Not good. On the positive side is that freelance networks are beginning to form. The question is whether there is enough business for everyone. 

Agency CEOs probably have a tough time to either manage the situation or to account for losses to shareholders. But the ones I feel sorry for are the newly graduates. They will have a harder time getting the jobs they want as there simply are less jobs to go around now.