Digital Advertising Agencies - The Woes and Ways ahead
Mar 21st, 2008 | By Arun Nair | Category: BusinessAdvertising on the Internet is almost a decade now, but its potential and benefit to marketers have only been realized fairly recently. The measurability, the innovativeness, the cost benefit and the unprecedented reach to a global audience has made marketing on the Internet a favourite amongst a growing number of marketers.
However, because this is a new medium, the number of online marketing agencies that can handle a client’s end-to-end internet marketing requirements are virtually non-existent. There are specialists in all kinds of areas - from SEO (Search Engine Optimization), PPC (Pay Per Click), Blogging, Online Media Buying, Banner Creatives, Facebook applications, Virals etc.
The good part is that there are many good specialists in their area of expertise, the problem is that all these areas are relatively incoherent. You need someone to orchestrate your campaign, route it to all these specialist areas and bring it all together to make the campaign successful.
If you manage the online initiatives for your company, you will relate with it, especially if your company has a big budget in the online space.
There are many so called generalists who claim to provide end-to-end, seamless online marketing solutions. But dig the surface, and most of these agency claims are empty and fail to deliver on their promise.
Many of the traditional advertising agencies have forayed into the digital marketing space, and are attempting to fill the gap for their clients. Their “attempt” however leaves a lot to be desired. Most of the client servicing guys handle the Internet business with the legacy of traditional advertising, and handle this medium with the same gloves.
That said, some of the big agencies are also acquiring specialist digital agencies, in the hope of completing the spectrum. It will be interesting to watch, how these acquisitions pan out over the years.
Will good digital marketing agencies thrive on their own, or would they need to be part of a traditional agency needs to be seen. Whatever may be the case, marketers/clients need a single point interface and a partner to maximize the brand and revenue potential.
Arun, there is no doubt that there will be shakeout in the market.
The advantage that big agencies have is their brand name, credibility and their long time relationship with big clients. The most important thing is the contact.
Big agencies cannot focus on niche areas the way the small guys can, while the small guys can never get into those doors of big clients easily enough.
There’s space for a symbiotic handshake.
I believe that the only way this will work is by large agencies that handle the brand agenda taking the lead. After all the web is a medium for the brand message to be communicated effectively. Its a great means to the end as opposed to the end itself. Large agencies that are able to acquire internet capability (either through acquisition of smaller digital agencies or through internal talent development/hiring) will start to gain clients simply because they are able to offer a 360 degree solution to clients. Good thread Anil.
Oops - Good thread Arun
Internet is less of an advertising space, more of a buying space.
Unlike other advertising mediums (read print, television etc.) Internet, more than any other medium, is about User Control.
User Control is why folks will need to think differently while advertising on the Internet.