
A new report by Forrester tells what many in tech have known for the past 10 years – that the ad agency is dead. The report says that by hiring more tech savy people the agencies can keep doing business as usual. The report author does not understand two things:
1) Ad agencies are a billing business not a technology business (no different than other fee based services like lawyers or real estate agents). As long as technology keeps infiltrating the ad business. The agencies are in a no win situation. They are not in total control of the future of their industry.
2) A good chunk of the digital advertising systems are moving to a do-it-yourself model. These systems cut out the middle man (the agencies). It is just a matter of time before a large chunk of the ad business will be digital and measurable (something the agencies don’t like – because they want t0
bill you like there is no tomorrow and get into creative mambo jambo artsy fartsy stuff).
3) Social media is the game changer – users, marketers and advertisers are already starting to do their own advertising, lead generation, branding, polling and surveys using social media tools. The shift toward do-it-yourself is only going to increase. With the wide availability of do-it-yourself systems gone will be the days where you (or your company) will hire an agency to handle your digital advertising. The advertising (digital) will become part of the web department. Disclosure: Our Social Media Strategies Conference is focused on helping companies take control of and effectively manage their social business, social marketing, advertising and optimization strategy.
A good example is McCann, it is a traditional ad agency that poached a few technology savy people and cloaks itself as a digital agency. They really don’t understand or know tech – their real goal is to get into your company and bill you up the wazoo. I know so many people that were billed hundreds of thousands and they never saw any (not even a shred) of measurable benefit or evidence. Those companies would have been better off doing online advertising. Today only the laggards in the technology industry use McCann.