• Adweek, Thursday, November 15, 2007 11:30 AM

A shift in consumer habits from analog to digital media may be revolutionizing the ad industry but, according to a new study by Accenture, it could really sting traditional ad agencies. In a survey of dozens of industry leaders, Accenture found that agencies would have the most to lose in any new order: 43 percent said they would fare worst in the digital transition, vs. the 33 percent who think broadcasters will. Cable operators came in third with 10 percent. The main challenge agencies face stems is from the ascendancy of performance-based advertising and the tools needed to execute it, says Charlie Symmons, senior manager in Accenture's media and entertainment practice.

"It used to be content was king; now it's very much context is king," he says. Accenture sees threats to agencies from technology companies that can more readily provide tools that allow clients to better know their customers, thus undercutting agency relationships. The firm also found that half of all respondents think digital media will be the primary way of delivering content and advertising delivery in the next five years. And 80 percent think it will happen within a decade.

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