Ad Agencies Stand to Lose in Digital Revolution
On the list today are a few articles that nicely complement each other. All are from the ad agency perspective, but they are relevant to all retailers who outsource any part of their advertising work. Be sure to keep these lessons in mind when selecting your next ad agency!
The Shops Stand to Lose in Digital Revolution article focuses on how the shift to digital media is revolutionizing the ad industry. A recent Accenture survey showed that "agencies have the most to lose in the new order, even more than broadcasters" (43% vs. 33%). The challenge is the move from content to context - "the rise of performance-based advertising and the technology tools needed to execute highly targeted campaigns, rather than mass-media pushes fueled by a singular big idea."
Technology companies, which can provide the tools that allow clients to better know their customers, could displace agencies' value to their clients. 50% of respondents believe digital media would be the primary form of content and advertising delivery in the next five years. Over 80% think it will happen within a decade. Over 70% said the industry is not "technologically prepared for the resulting changes in performance measurement."
On the flip side, the Web Shops Not Ready to Lead article focuses on the state of digital agencies these days. While they have the most to gain in the future, currently they "still fall short in their ability to lead broader marketing and brand strategy" according to a recent Forrester report. The outcome - Web shops will "continue to be relegated to the role of implementer, while a client's traditional shop takes the lead."
The recommendation for interactive agencies - find "people who understand that broader relationship between online and offline media," don't just focus on executing the digital side. Another challenge - fill in the gaps in new online areas, especially social media, and then figure out the effect of these interactions on their clients' business.
Finally, the Why Hires Must Be Experts in Multiple Areas article points out the problem ad agencies are currently facing as they try to find employees that are able to work across media in order to create a 360-degree agency. Candidates with the ability to fill multiple roles using expanded and diverse skill sets are extremely scarce, and many companies are "cross pollinating," looking across industries to find people with unique backgrounds.
"Traditional agencies looking to please both clients and employees need to reinvent themselves, not only to help ensure business success, but also to attract and retain the innovation drivers and to enable their current employees to fill multiple roles... This growing convergence of marketing, promotions and advertising is largely being driven by marketers' desire to streamline messaging and ensure all aspects of brand are managed consistently. Also fueling this change is the continuous development of online media and interactive advertising, which blur the communication lines."
Posted by Universal Ad
The Shops Stand to Lose in Digital Revolution article focuses on how the shift to digital media is revolutionizing the ad industry. A recent Accenture survey showed that "agencies have the most to lose in the new order, even more than broadcasters" (43% vs. 33%). The challenge is the move from content to context - "the rise of performance-based advertising and the technology tools needed to execute highly targeted campaigns, rather than mass-media pushes fueled by a singular big idea."
Technology companies, which can provide the tools that allow clients to better know their customers, could displace agencies' value to their clients. 50% of respondents believe digital media would be the primary form of content and advertising delivery in the next five years. Over 80% think it will happen within a decade. Over 70% said the industry is not "technologically prepared for the resulting changes in performance measurement."
On the flip side, the Web Shops Not Ready to Lead article focuses on the state of digital agencies these days. While they have the most to gain in the future, currently they "still fall short in their ability to lead broader marketing and brand strategy" according to a recent Forrester report. The outcome - Web shops will "continue to be relegated to the role of implementer, while a client's traditional shop takes the lead."
The recommendation for interactive agencies - find "people who understand that broader relationship between online and offline media," don't just focus on executing the digital side. Another challenge - fill in the gaps in new online areas, especially social media, and then figure out the effect of these interactions on their clients' business.
Finally, the Why Hires Must Be Experts in Multiple Areas article points out the problem ad agencies are currently facing as they try to find employees that are able to work across media in order to create a 360-degree agency. Candidates with the ability to fill multiple roles using expanded and diverse skill sets are extremely scarce, and many companies are "cross pollinating," looking across industries to find people with unique backgrounds.
"Traditional agencies looking to please both clients and employees need to reinvent themselves, not only to help ensure business success, but also to attract and retain the innovation drivers and to enable their current employees to fill multiple roles... This growing convergence of marketing, promotions and advertising is largely being driven by marketers' desire to streamline messaging and ensure all aspects of brand are managed consistently. Also fueling this change is the continuous development of online media and interactive advertising, which blur the communication lines."
Posted by Universal Ad
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