Skip to main content

Legacy Ad and PR Agency Customer Exodus


Marketers worldwide are shifting their budgets into cheaper, more measurable categories. In most cases, that means online marketing. Meanwhile, traditional advertising and PR firms use their industry associations to spread FUD that new methods aren't effective.

Regardless, these legacy firm's concerted smear campaign is clearly failing to stop the continued exodus of even their most loyal customers.

In a survey by the Society of Digital Agencies (SoDA), 81 percent of respondents said they plan to invest at least as much in digital marketing in 2009 as in the previous year.

Ironically, more than 77 percent of traditional advertising agencies are increasing the amount of digital in their budgets by 1 percent to 29 percent. And over 10 percent are upping online budgets by 30 percent or more.

In addition, about 15 percent of digital agencies, digital service providers and freelancers plan to increase digital budgets by 30 percent or more. Brand agencies were least likely to add to digital budgets, with one-half planning no shift at all.

When asked if they were doing more digital work in the wake of the economic downturn, at least 36 percent of advertising professionals of all stripes said yes, and many expect to take on significantly more.

"The economic crisis will accelerate the shift of focus and importance from traditional media to digital media," wrote SoDA analysts. The SoDA findings are backed up by an earlier survey from Ad Media Partners, which found executives planning to increase digital spending from search to banners.

The combination of accountability, convergence and the infusion of digital media into every facet of life makes the future look bright -- for marketers making the move to digital marketing. In contrast, the mixed messages from traditional Ad and PR firms merely assures their continued decline.

Popular posts from this blog

How Data and Analytics Drive Business Growth

Senior executives in the world’s largest and most complex organizations will develop the insights required to achieve lasting Digital Transformation. Gartner has identified a model for digital business growth that binds together data, analytics, technology, and forward-looking transformation capabilities. The Gartner Research Board said that data and analytics (D&A) leaders are uniquely positioned to drive this strategic organizational change that will make their companies behave like 'digital native' leaders.  "The most advanced and successful D&A leaders are driving new opportunities to use digital capabilities – often data and analytics products – to capture value. Those opportunities should directly connect to the business priorities," said Mario Faria, vice president at Gartner . Digital Business Market Development At the same time, some leaders are using digital and D&A to create whole new business models. These leaders – which Gartner named the CxO

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc