Introduction

The accusatory remarks are coming from all sides these days. Established analysts, quantitative studies and even quotes from brands that have relied on traditional advertising agencies are calling out their ability to plan and execute online. At least on paper and planning, traditional agencies are losing out to their smaller, newer, more agile interactive competitors.

One of the most incendiary barbs came from P&G CMO Jim Stengel in his now legendary AAAA speech in mid-March.

Then came a late February report from Forrester research titled "Help Wanted: 21st Century Agency." It showed that in Q4 2006, Forrester surveyed both client-side marketers and advertising agencies to measure attitudes toward agency effectiveness. Marketers in this survey gave their agencies a Net Promoter rating of 21 percent. That means that most marketers would not recommend their agencies to a colleague.

While most of the industry was whispering about the Sorrel libel trial and the latest Wal-Mart fiasco, the evidence of future trouble kept piling up. A study in March from Evalueserve for Sapient found that only 10 percent of the more than 100 CMOs and senior marketers surveyed in the United Kingdom and United States "seek to partner with large advertising agencies for their online marketing."

For now, the anti-legacy agency movement is not measurable on any kind of factual basis. But the groundwork has been laid for future problems for the big holding companies and their various agencies. A closer look reveals two huge reasons for this, and two potential solutions.

Author notes: John Gaffney is executive editor, publications for 1to1 Media. Read full bio.