The Web’s emergence is forcing ad executives to succumb to marketers’ demands that agencies reinvent how ads are created, and forgo their TV-centric approach. Clients are even calling for changes in the way ad firms are structured. But until now, few advertisers have spent more than 5% to 10% of their marketing budgets online. With the growth of online video and social networking, ad experts expect that percentage to jump significantly this year.
The problem is that none of the major ad agencies are even equipped for this. Not by a long shot.
It’s part of the reason why many of the larger companies (and even mid sized ones) have a secondary agency to handle all the SEO, SEM, SMO and other aspects of the online side of the account. Truth be told, the problem is rampant within the advertising industry. When firms like Media Bistro are asking ‘where did your million in revenue went‘
It should start raising questions. Pretty Amazing overall… not the fact that firms like that are growing or that the Wall Street Journal is reporting it.. it’s that the existing agencies didn’t see it coming.. even though it’s been a freight train heading right for them for the past 1/2 a decade.
Good Job Wall Street Journal for reporting it… it’s a shame however.. these Agencies should not have had to see it in black and white to understand what is happening around them.