Advertising agencies are wrestling with two big issues. Declining audiences and fragmenting media. The old methods of blasting out ads using broadcast and national press and hitting a big percentage of the target audience is not a simple option - as if they ever were.

A couple of years ago I was talking to a CEO who said he had decided to use overseas ad agencies and off-shore production to cut costs. They were using India and ended up with a great set of TV ads. Creative and beautifully exectuted. I met him again a few weeks ago and asked about his plans for the next few years. He said he was not sure but he did not see the value of repeating the ad campaign again - even if outsourced - as he could not really see them affording the media coverage to reach the same type of audiences again. He was wondering about social media but was unsure how to make it really work.

Here is AdAge's take on the subject.