Writing in AdAge, Steve Rubel points out some telling statistics regarding the coming relationship between online media properties, ad agencies, and marketers. And it doesn’t look all that good for ad agencies.
What’s happening is that media properties, realizing that their revenue models for their businesses will likely be tied into advertising dollars as opposed to subscriptions have been deciding to develop creative and strategic digital capabilites to help serve their likely base of advertising customers.
Steve got this information from Christopher Vollmer of Booz Allen Hamilton, who made a presentation at IAB’s annual meeting in Phoenix last week. I went to Booz Allen’s site and couldn’t find the study, but Steve lays out some interesting statistics.
More marketers believe they’ll be doing more business with online media properties from a creative standpoint (52%) than they will with agencies (27%). That’s almost 2 to 1! This means that marketers either don’t feel as if they’re being well served by their agencies or that agencies as we know them today will just not be needed as much tomorrow. Or perhaps both of these will ring true. And media properties seem to be thinking the same thing. A full 53% of them expect to be working more with their advertisers by 2010.
If you still have doubts, the study showed that 91% of media companies have some sort of “agency-like” service, including idea creation (88%) and creative development (79%). I know this to be true - because I’ve used them.
My thought is that the end client - the marketers - are often laggards, so to speak, just like many agencies. But when it comes time to choose creative thought, they will just as likely turn to the media property that knows their audience and knows what works, than they will their ad agency that has, for whatever reason, resisted becoming digitally savvy.
No Comments » Posted on March 5th, 2008 by Jonathan Trenn
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