• by Wayne Friedman , Staff Writer, March 3, 2010

Advertising agencies need to transform themselves â€" but not necessarily towards traditional functions. There should be moves shifting to new information and technologies.

“Agencies need to think to like software companies,” says Greg Smith, chief information officer of McCann Worldgroup. “Software companies are entrepreneurs.’

With consumer and clients developing new software and systems â€" with the limitations of computer storage for individual companies -- agencies are threatened to be left behind. “We will lose opportunities if we don’t do this.”

One of the ways of improving this is moving to so-called “cloud” computing, where agencies get access to immense storage and computing power -- and also without having to buy expensive software downloads â€" at centralize locations at big computing companies.

“It will allow us leverage core competency of companies such as Microsoft,” says Smith. “It gives us scale.” Smith says this could save agencies 30% on information costs, in some cases.