Online advertising company Brave New World says a "depressed" print design market and slower-than-expected pick-up of web marketing by corporates are to blame for nine job losses amongst its ranks.
Many of the nine, who were in both design and administration, were original staff members from Dave Clark Design, the company that web developer WebMasters Network merged with last year to form Brave New World.
“We’ve been making budgets in the online stuff but it’s the traditional stuff that hasn’t been performing as well as I would have liked, and the online is not making up for that," chief executive Frank van der Velden says.
“We are rebalancing according to market demand.
“The traditional side of [the design market] in NZ is not so good, and Australia is bad - it's pretty depressed. There is less rebranding going on, less merger and acquisitions.”
But the change to his company structure doesn’t mean online marketing is booming here either.
Van der Velden says corporates have been “conservative and slow” to move into allocating budgets to online, with Jupiter research showing corporates are way behind such trends in the UK and US.
One area they are responding to such trends is for annual reports online - with corresponding less budgets being spent on the print version.
Bendon's annual report this year consisted of a small, simple brochure with financial information slotted into a brochure showcasing its products - with extended reports put up online.
The redundancies at Brave New World bring staffing levels back to 70 - up from 40 at the time of the merger - with around 55-60 in the communications, advertising and design side, and the balance developing Brave New World'sTouchpoint email campaign software and working for WebMasters.
Van der Velden says Brave New World has been working on a policy of hiring for skills rather than following the company's organic growth but still expects to break even this financial year.
He says they will continue hiring "selectively" and sees future job opportunities in the email campaign and writing side.