• Adweek, Friday, April 24, 2009 11:45 AM

The Society of Digital Agencies, a new organization, expects digital shops to grow 8% this year. As part of its inaugural 2009 digital marketing outlook report, the organization found that just 10% of digital shops expect a decrease in digital projects this year, while about 30% expect spending to remain roughly the same. Traditional shops were even more bullish about digital projects, with nearly 70% expecting increases.

However, the agencies surveyed noted that clients are hesitant to commit to large projects. They are cautious that the economic situation could worsen, says Paul Lewis, director of operations for SoDA, forcing even deeper cuts. Thus far, the cuts have mostly affected traditional advertising.

In the meantime, Lewis said digital agencies are taking on smaller projects and slowing down on hiring. "Most are finding there's a decent amount of fill work," he said. "Maybe they wouldn't have normally taken (such project) before." For the study, SoDA polled 560 companies, including 370 digital agencies, 50traditional shops and 77 clients.

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