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19.11.2010 Agencies still adapting to digital era

Online adspend reached a record high in the US during the last quarter, but many agencies are still struggling to build models and processes tailored to the digital age. Industry body the IAB and consultancy PricewaterhouseCoopers reportedthat internet ad revenues hit $6.4bn  in Q3 2010, a 17% improvement on Q3 2009.

Based on the year to date, the web seems set to surpass its largest ever annual expenditure, $23.4bn in 2008, and easily beat the $22.6bn posted in 2009 when the downturn meant companies trimmed budgets. "Advertisers are shifting more of their brand messaging online," said David Silverman, a partner at PwC. "This trend reflects the accelerating shift in consumer behaviour towards the internet and away from traditional media."

However, although the choices available to marketers have increased exponentially, effectively engaging the target audience is similarly complex. Another major issue facing the ad sector is the advent of new remuneration systems, not least as the web is considerably cheaper than TV, but is technically labour-intensive. "Creating more work for less money is the big paradox," Matt Howell, president of Modernista, an agency in Boston, suggested. New players are also entering the fray, with Accenture and Sapient providing new media services, Google, IBM and Microsoft delivering analytics, and MediaMath and DataXu mechanising media planning.

B.L. 19.11.2010