The only way to grow in a difficult economic environment is "through marketing innovation," Miles Nadal, chairman and CEO of the eighth largest ad agency in the world MDC Partners, told CNBC today.
That innovation is starting to pay off for both advertisers [companies and brands] and their agencies.
"We're seeing very big pickups in ad spending," with "significant double-digit increases" because clients have taken a point of view that "if we invest now in a stable environment—with moderate growth as the expectation—then we are going to pick up share," the CEO of MDC Partners said, adding, clients are "lean, mean and efficient."
Take MDC's clients: Domino's Pizzareporteda 52 percent increase in profits and Microsoft saw a 22 percent increase in profits.
With $1.8 trillion of excess cash on corporate balance sheets here in America, "they have to find places to put them," and there is a "fundamental need" for companies to spend on marketing—in a very targeted way, Nadal said.