Are Ad Agencies Dying?

It is clear that social media or new online advertising isn’t easy for traditional agencies. Recently an adage article came out and basically said the same thing.. What is the effectiveness of online advertising?

It is clear that advertisers are more in control and the role of the agency is become less relevant in social media. The new web 2.0 trend is presenting opportunities for new web services platforms to be agencies that replace the middleman agency.

Here is my equation for successful marketing or advertising in today’s web 2.0:

Advertising 2.0 = (Social Media + Social Networks) + Social Commerce

I’ve been involved in successful social media campaigns and one consistent observation is that content is very important to influence social networks which in turn creates a ‘conversion’ or social commerce dynamic.

Update:

Twitter conversations are suggesting that agencies will still be around.  Maybe a better title for this post would be:  Traditional Ad Agencies are Dying – Make Room for the New Modern Agency.

For example GM, Intel, Microsoft, and leading bellweathers in advertising are all doubling down every year online advertising at the expense of other areas like TV and print.  If you believe that TV, print, radio, newspapers are declining then the firms servicing them will disappear.

Here is a graph in today’s adage that shows the spend trends in the automotive sector.

4-autograph-031708.jpg

Author: John

Entrepreneur living in Palo Alto California and the Founder of SiliconANGLE Media

2 thoughts on “Are Ad Agencies Dying?”

  1. Spot on. Agencies will still be around, just as printers print direct mail and brochures today. Going from the high chair to the booster and then to the big boy seat at the table is the challenge. Still not sure why Bain, McK, et al haven’t bit on this.

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