27 March 2011
So who is best at understanding the market – Advertising Agencies or Their clients
Oh boy… way back when I was in advertising working for some of the leading agencies of the day – I would say (now openly with the benefit of hindsight) that in general we thought our clients were less capable of understanding the process and effectiveness of advertising. After all that is why they hired us right? As I have been out of the Ad business for a very long time – I don’t have any vestiges to protect. I was thus very interested to read a piece in eMarketer about the difference in perceptions of the Advertisers and the Agencies with regard to digital media.
According to a report on 2011 marketing budgets from Econsultancy and SAS, agencies worldwide published by eMarketer http://www.emarketer.com/Article.aspx?R=1008275 are looking to move more aggressively into Digital Media than their clients. Advertisers prefer the tried tested and true more traditional outlets of email and search as well as sticking with display advertising. Their agencies are more focused on the newer digital media services of Social and Mobile. While this is good for the traditional media. The advent of the iPad and greater adoption of mobile and social media makes it only a matter of time before the change makes the existing economic model for many forms of traditional media unsustainable. In my view as I have written many times before this is actually very sad because we are probably witnessing the last generation who will ever hold a newspaper in their hands.
Sad but true.