Thursday, November 29, 2007

Public Companies, Private Matters

I've got a wild thought in my head, and I want to document it, to begin exploring if I have a valid point on this subject. My thought is, how does the market benefit from having advertsing and other related companies as publicly held institutions. I know it serves a relatively B2B function, but I'm not sure how an investor benefits from revenue made by an advertising firm, from a business who has to subtract the expenditure from their bottom line. After all, advertising is only as viable as the real producers of our economy. So, what exactly is an investor in an ad agency looking for in terms of performance, which is totally dependent on the spending power of others? I know it's a business, but the pressure for an ad agency to perform means the business sector must give up revenue to make this happen. In the end, who really wins?

This may be a stupid business question, but I'm not so sure.

Help me out with your comments.

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