The Frienemy is now an enemy. Google the largest Advertising Agency on Earth
The Frienemy is now an enemy. As it now appears that Advertising Agencies are in the wrong business. In fact look at the PPC ads surrounding this site, it’s filled with advertising agencies hawking their goods though Google’s Adwords. Google’s model, the one where a single creative individual could purchase TV Ads, Print Media Ads, Search Marketing Ads and Display ads on a massive network of sites appears to be beating hands down the traditional 20% over spend advertising model. What’s missing isn’t the distribution network anymore …. it’s the creative… meaning that is all that’s left of value from the traditional agencies, and some companies are stating that their marketing departments are far more creative than some of the trash coming out of agencies these days. It also leaves this wide open vacuum of power that smaller firms that generally are far more innovative are using Google Adwords and the associated programs (TV spots, Print, etc) to instantly open up a distribution network that generally was only open to traditional agencies. We can’t hammer this enough… the traditional advertising agency lost the distribution channel. Talk about an equalizer.
We have a report that we are currently holding off until verification that a 12 man agency just stole a 100 million dollar account from a Holding Company, using Google Adwords almost exclusively as the distribution channel. Meaning that all the overhead that normally goes to searching for venues to place the ads just vanished almost overnight in terms of cost to the client. You should see a story in the next few days with the proper release when it’s announced to the public.
This is terrifying thought to many agencies.. especially during a recession because once these clients get a taste of total control for low cost.. they are going to defect in mass numbers.
Think about it.. one control panel.. buying ads in print media, web search, tv ads and display ads … from one computer.. with one click. We have no idea how Ad Agencies are going to defend against this one.
Leave a Reply