Traditional, Digital Agencies Clash Over Media Usage

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For the most part, digital and traditional advertising aren't working too well together. A survey from Strata, a media-buying/selling software company, says that although digital continues to grow, there are major obstacles. One major one: "clients still do not fully comprehend the value of this form of media."

Strata says its survey also reveals major hurdles in achieving cohesive campaign goals. Part of this comes from the digital side, which is fighting against a lack of advertiser demand and weak "channel effectiveness."

The findings suggest that 93% of respondents are not actively requesting new ad venues such as the iAd, Google TV and Apple TV. Fifty-one percent of respondents says channel effectiveness is hurt, due to insufficient digital measurement. Another 59% say clients don't truly understand the value of digital advertising.

John Shelton, president and CEO of Strata, says: "Agencies are being actively challenged by clients to provide true ROI figures, but they don't have the tools to fully report digital and traditional advertising results together.

"Agencies are also struggling with selling certain digital advertising to clients," he adds, "as most are currently unimpressed with the reach of such new avenues."

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1 comment about "Traditional, Digital Agencies Clash Over Media Usage".
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  1. Doug Garnett from Protonik, LLC, May 2, 2011 at 11:59 a.m.

    Interesting study.

    What they don't note is that it's entirely possible that companies don't want to invest at the level their agencies suggest because they aren't seeing a bottom line impact from digital media - at least not one that matches the hype.

    This is especially important because it appears that agencies are major profit beneficiaries of shifts from traditional media (where they keep only a commission percent - if that) to digital media where they get to increase the number of hours they charge at a high profit.

    Clients SHOULD be cautious.

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