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Case Title:

Madison Avenue: Changing Business Model

Publication Year : 2004

Authors: D Gayatri & T Phani Madhav

Industry: Advertising


Case Code: MCS0009

Teaching Note: Not Available

Structured Assignment: Not Available

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Madison Avenue, which has been the home for the advertising industry in America, was facing several strategic inflection points by the end of the 1990s. Media fragmentation, Internet advertising, media consolidations, and ad-zappers like TiVo were, to name a few, emerging as a threat to the much-celebrated creativity-based model of the industry. In view of these threats, the creatives became cost managers of the industry who were concentrating a major part of their efforts on strategic cost-efficient media plans for their campaigns.

Pedagogical Objectives:

  • To discuss how Madison Avenue lost its power over price and control of the clients' advertising budgets
  • To discuss the sequence of changes that occurred both within and outside the industry, leading Madison Avenue to change its business model, focusing on targeted marketing rather than the traditional approach of the mass marketing age.

Keywords : Madison Avenue, Media buying, Media fragmentation, Advertising industry, Integrated marketing, Whole egg approach, Marketing Strategies Case Study, Commission based compensation, Conflict of interests, Mass marketing, On-line marketing, Micro-media, Dotcom advertising, Media consolidations, Pricing power


  • Creatives to Cost Managers
  • Madison Avenue – Journey Through Creativity
  • "Whole egg" Approach
  • Mass Media Age Fading
  • The Age of Micro Media

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