Thanks for taking the time to comment. Excellent additions.

Given the potential of social media, ad agencies should look to find their niche with laser-like precision, as social media tools such as Twitter enable agencies to market to the long tail, much in the same way that their clients can. This potential should only grow as these tools become more mainstream.

Prospering in a recession for an agency will also require innovation, particularly innovation that leads to value. Ad agencies do not necessarily have to innovate their own products (though some cool blog add-on gadgets like Ogilvy’s suite of aggregator widgets are nice brand awareness innovations) but at least be aware of media innovations that are taking place on-line and offline.

And better yet, they should know how to use those innovations to help market their clients’ brands.