MrWeb2 says:

Digital Shops Exploiting General Agency Skill Gaps
by Gavin O'Malley, Tuesday, Feb 27, 2007 6:00 AM ET
THE WEB AND RELATED DIGITAL technologies are exposing major weaknesses in traditional agency skill sets, according to a study released yesterday by Forrester Research.


This trend, the study finds, is working in favor of specialist digital shops, which marketers are increasingly calling upon to fill skill gaps.

"Marketers first turned to digital specialists to build Web sites during the dot-com bubble," explained Peter Kim, Forrester Research analyst and author of the report. "Now, the specialist trend has expanded as marketers seek fresh approaches from digital shops--like Avenue A | Razorfish and Critical Mass--as well as creative independents--like Modernista!, Tugboat, and Mother--eroding the core value proposition of traditional ad firms."

Digital agencies, Kim noted, have even begun winning "traditional" agency work as in the case of Agency.com, which has created print and outdoor ads for IKEA United Kingdom, and AKQA, which now serves as Yell.com's main agency.

Beyond confirming what many have long suspected, the study illustrates a major rift between marketers and agencies with some harsh survey results: On aggregate, agencies scored a dismal Net Promoter rating of 21%, showing just how few marketers in the fourth quarter of last year would have recommended the same agency services they themselves pay for [Part 1]

28 Feb 2007 - 09:53 Melbourne

MrWeb2 says:

Part 2

"Today, agencies must deliver technology--in addition to creative--expertise, and many traditional agencies struggle to adapt," Kim said. Indeed, according to the study, marketers today view ad agencies as the least competent among service providers to deliver marketing technology.

Huge gaps exist between marketer and agency perceptions of the ability to deal with changes in TV, Internet, and consumer-generated media, according to Forrester. To illustrate his point, Kim points to recent agency blunders like Wal-Mart's fake blogs (the product of a PR agency) and GM's Chevy Tahoe user-generated ads.

Forrester fielded a survey with the American Marketing Association and interviewed eight vendor and user companies, including: Avenue A | Razorfish, H&R Block, Hill Holliday, JWT, Kia Motors America, and Xerox.

Notably, despite the fact that agencies wield influence over a majority of the marketing budget, a whopping 76% of marketers do not measure the return on investment of their lead agency relationship.

[Source: MediaPost.com]

28 Feb 2007 - 09:54 Melbourne

MrWeb2 says:  

We just don't see online ad sales companies or agencies delivering online ad products with in depth innovation, interactivity, measurability, tracking and analytics at this point in time.

It takes companies and individuals with backgrounds in search, classifieds, and online ad delivery technologies as well as some at least medium term insight into user behaviour to build products which will yield tangible results for advertisers

28 Feb 2007 - 09:56 Melbourne

MrWeb2 says:

Agencies Warned: In Digital Media, Change Or Die

by Tobi Elkin, Thursday, Mar 22, 2007 6:00 AM ET

DEVELOPMENTS IN DIGITAL MARKETING AND media are happening at such breakneck speed that marketers must prepare to navigate them--or be left behind. The same goes for the agencies that advise them. But the consensus among a panel of experts appearing at OMMA Hollywood earlier this week is that they're not ready, not by a long shot.

"Agencies aren't prepared for where things are going," said Tim Hanlon, senior vice president-Ventures Group, at Publicis Groupe's Denuo. Hanlon was, by far, the most strident of the group. Agency silos, he said, remain the order of the day, referring specifically to the relationship between brand and direct response media.

"Consumers, especially younger ones, if they see something in any form of media, they're going to want to go further with it," Hanlon said. "Agencies should be de-siloing to make that TV expression both a branded and DR vehicle," whether it's a TiVo vehicle or a telescope unit, "a little TV with a DR component," adding: "Is that the direct marketing agency's responsibility or the brand agency's? I think it's both, so why do have two separate groups?"

Good question. The role of the agency will need to change, given the rise of online-based ad auctions, hyper-local media planning and buying services, like SpotRunner and Spotzer, and other emerging media planning platforms.

"Google showed us that search and targeted ad messaging is not only a viable business, but a gargantuan business," Hanlon said. "The holding company model missed it. Now they're scrambling to be experts or to acquire this skill." Hanlon noted Publicis' acquisition of Digitas late last year.

With mobile and search engine optimization, "the reality is that you still have to have integrated agencies and teams. It's a big challenge. People have to be aligned differently. The way we hire and [provide incentive] needs to change.

23 Mar 2007 - 09:49 Melbourne