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Minyanville : Advertising Agencies will “never come back”

September 14, 2009

“The good old days before the Internet atomized the advertising market, slashed billings, and, in the view of some, gutted creativity. In the Golden Age, advertising was simple: Ballerinas danced in kitchens to sell appliances, cars were built in America, and cigarettes were pitched by babies” is how the article starts off at Minyanville, a leading news source for financial news.

In essence what they are saying is that Advertising isn’t what it used to be. Not even close. Traditional is out, digital, SEO , SMO , blogging is in and the billables for that type of advertising are a fraction of what these holding companies are accustomed to and what their payrolls are geared for.

“The Internet allows ads to be targeted to specific audiences and response can be measured by site views and click-through rates. Micro ads typically come with micro budgets, ending the scale and sweep of ads from the Golden Age.”

Hence our argument from nearly half a decade ago.

This doesn’t matter for now as we can still make these expensive print media ads and still design sites in unspiderable ways for now. We figure we have at least 5 years left to rake in the cash.

Looks like we are right on schedule.
vierdonkey

Written by TheFounder · Filed Under Advertising Agency News 


Comments

  • http://sparkcreatives.com/ Michael Drabenstott

    Most agencies are adapting out of necessity, as their clients are asking them to pursue non-traditional outlets. In the past 15 years, public relations activities have driven much of the growth at agencies where traditional print and broadcast advertising has faltered. Digital and social media are adding to that.

    Agencies need to shift from developing overtly promotional content to content that will engage communities and add value to the internet. It can entertain, enlighten and advance the conversation, but it cannot always promote. It’s more akin to a PR approach than heavy-handed marketing.

    However, most of that work is still billable. And media dollars that are redistributed toward billable hours (instead of commission or media services) should be more profitable for agencies as long as they can retain the content generation in house.

    More than ever, quality content will rule the day.

  • http://sparkcreatives.com Michael Drabenstott

    Most agencies are adapting out of necessity, as their clients are asking them to pursue non-traditional outlets. In the past 15 years, public relations activities have driven much of the growth at agencies where traditional print and broadcast advertising has faltered. Digital and social media are adding to that.

    Agencies need to shift from developing overtly promotional content to content that will engage communities and add value to the internet. It can entertain, enlighten and advance the conversation, but it cannot always promote. It’s more akin to a PR approach than heavy-handed marketing.

    However, most of that work is still billable. And media dollars that are redistributed toward billable hours (instead of commission or media services) should be more profitable for agencies as long as they can retain the content generation in house.

    More than ever, quality content will rule the day.

  • http://www.tribbleagency.com/ TheFounder

    Hi Mike,

    I completely agree with you regarding PR being the driving force… let’s face it.. Social Media is nothing more than online PR.

    The problems that most ad agencies are having is condensing that 600 word press release down to 140 characters to send out over twitter…. or enticing people to “fan” their client on Facebook… or upload a youtube video that people actually want to watch…

    This is sort of where PR meets digtal.

  • http://www.tribbleagency.com TheFounder

    Hi Mike,

    I completely agree with you regarding PR being the driving force… let’s face it.. Social Media is nothing more than online PR.

    The problems that most ad agencies are having is condensing that 600 word press release down to 140 characters to send out over twitter…. or enticing people to “fan” their client on Facebook… or upload a youtube video that people actually want to watch…

    This is sort of where PR meets digtal.

  • http://www.famefoundry.com The Communicator

    The advertising agency is dying. In this post-recession economy clients are paying more attention to what they are shelling out to their agency of record. The days of overinflated pricing for tactics that no longer work are over.

  • http://www.famefoundry.com/ The Communicator

    The advertising agency is dying. In this post-recession economy clients are paying more attention to what they are shelling out to their agency of record. The days of overinflated pricing for tactics that no longer work are over.

  • http://valuableinternetinformation.com/?p=158359 Valuable Internet Information » Minyanville : Advertising Agencies will “never come back”

    [...] See more here: Minyanville : Advertising Agencies will “never come back” [...]

  • http://www.tribbleagency.com/ TheFounder

    Well pricing is out of wack for the bigger firms… anything with the word “holding company” attached to it and generally getting 1/2 the work for double the cost

    It seriously depends on the agency in question… and bigger agencies sometimes look like a battleship. big, powerful.. but boy you don’t want to send that thing up the river.. chances are it’ll get stuck and become a big target for the little boats to nail it..

  • http://www.tribbleagency.com TheFounder

    Well pricing is out of wack for the bigger firms… anything with the word “holding company” attached to it and generally getting 1/2 the work for double the cost

    It seriously depends on the agency in question… and bigger agencies sometimes look like a battleship. big, powerful.. but boy you don’t want to send that thing up the river.. chances are it’ll get stuck and become a big target for the little boats to nail it..

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