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

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...