Tuesday, April 17, 2007

Ad Agencies Be Afraid, Very Afraid...

I've lifted this from Guardian Unlimited since it involves a registration to view:

"Google is now taking on the role of a mass market advertising agency when it comes to online campaigns, according to a report.

The online search giant provides brands with focused, sophisticated analytics - data on who is looking at an online ad - where the client only pays for campaigns that perform exceedingly well, according to the Accenture digital advertising survey, Mass Marketing Unplugged.

Google now has the power to dilute the influence of the traditional advertising agencies' stranglehold over clients and revolutionise account management techniques, as clients demand greater relevancy and accountability in the quest for returns on their marketing budgets.
As more and more marketing spend shifts to digital media, the advertising industry is being forced to adopt radical business models.

The precision measurement of a campaign's impact provided by search advertising - as pioneered by Google, where companies buy search keywords or prominent positions for ads on search result pages - is an increasingly important driver for brands in reaching their target audience.

Accenture's research involved interviews with more than 70 business leaders in advertising agencies, technology companies and online publishers.

Of these, 71% believed that performance-based fees would dominate the future of advertising. Another 87% of respondents put faith in sophisticated statistical analysis as the benchmark for the successful 21st century ad agency. There is a great risk, according to the survey, that as global advertising agencies such as Saatchi and Saatchi come under more pressure from big brands to justify campaign performances, it is inevitable that they will have to invest in huge IT infrastructures to provide the necessary data.

Andrew Chambers, chief executive of WPP subsidiary Digit, said Google reckoned it can now predict 28 days in advance of a feature film's launch whether or not it will be successful based on the "online buzz".

Canny media owners can then track advance publicity and use the information to decide where and when to target their pre-launch advertising, he added."

Just another reason why Google's acquisition of Doubleclick should be referred and why agencies should be afraid for their futures..

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