The bad news for agencies. Agencies are losing influence

2007 year is already called "breakthrough» mobile marketing , promising the media, which, considering the 2 billion mobile phone users worldwide, is one of the major distribution channels in the world.
The largest representatives of the advertising industry are beginning to resort to the use of mobile marketing tools: P & G Mobile Ad Lab plans to launch about 35 mobile advertising programs by the end of the third quarter of the year; Pepsi in the summer is launching a series of mobile video ads; Company Jeep brings its series of Internet videos «Mudds» on the mobile platform.

These companies are examples of how the major market players are trying to be closer to its potential and existing customers - or rather, closer to their wallets. The good news is that the large holdings that have sufficiently attractive for the consumer proposals are at a very advantageous position to extract profits in a rapidly changing business environment. The bad news is that advertising agencies are gradually yielding its role as a leading marketing consultants.

One of the largest and fastest growing segments of the advertising market is currently segment of various marketing services - according to forecasts, the cost of this segment by 2010 will grow to $ 455.7 billion. More recently, Interpublic Group strong > announced a positive trend of growth of profits in local markets, but essentially this growth, again, was not caused by the advertising profits IPG, and increase profitability PR and branding industries division IPG - Constituency Management Group.

In December, with the acquisition of the company Publicis of Digitas for $ 1.3 billion, many experts predicted the kind of the beginning of a "new era" in which the French company has positioned digital media as the main direction, along with its other channels. However, by and large, agency overestimate its significance for marketers , because those agencies have taken a more minor role, analysts say the research company Forrester Research
Analysts of the advertising industry describe the situation very specifically: «Agency does not have the huge impact of what had, for example, 20 years ago» , the consultant says Joan Davis
The difference between the situation of agencies and marketing companies is especially noticeable when you have to respond to changes in consumer behavior and deal with Internet advertising , analysts said Forrester. Less than 60% of customers believe that their agency can help them navigate the ever-changing consumer audience , while the 80% are convinced the representatives of the agencies themselves. 95% of agencies believe that adequately equipped to use the tools to Internet advertising and promotion , while only 45% of marketers agree.

According to the representative of the marketing department of a large company-retailer who participated in the study: « A large number of advertising agencies in senior positions in their companies, in fact, prefer to deal precisely with traditional media channels , which they call" integrated " - but only insofar as it is added to, for example, the website ».

Anticipating its report on media 4A conference in Las Vegas, Jim Stengel , Procter & Gamble, said that advertising agencies to adequately cope with the rapidly changing consumer behavior and increasing penetration into the life of the Internet. However, he added, the goal is something else: "We can no longer measure success by how the agency handles these tasks as easy to deal with them - a little. Companies need a fundamentally new approach ».

According to the surveyed Forrester, PR - one of the most important sectors in which companies need to attract third-party experts. Costs for PR in the budgets of the companies according to the group Veronis Suhler for 2006 amounted to 12.5% ​​or $ 3.35 billion. "In a rebooting of information, PR is becoming a more effective way of communication," says James Razerferd, senior vice president of Veronis Suhler.

The rapidly developing media technologies and changing consumer preferences - highlights, which slightly cope traditional advertising agencies. Being burdened with existing and often inert structure, agencies can not just adapt quickly to market changes and to acquire knowledge of new, continually emerging media channels.

Tatiana Smirnova

Source: Content-review.com

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