In Focus

Digital growing pains

Maybe you've heard the estimates? This thing called interactive marketing -- it's going to be really, really big. Up to $61 billion by 2012, according to a recent forecast.

So you've heard the predictions? Well, industry experts have been anticipating a windfall for digital agencies for years, yet few of these companies have built up their staffs and skill sets to prepare to take a lead role in integrated campaigns. Instead, most interactive marketing groups continue to relegate themselves to taking direction from traditional, buttoned-up print and media agencies. At least that's what's happening according to Forrester analyst Brian Haven.

In a December report, Haven suggests that interactive agencies need to strive harder to become lead agencies, not only because the digital market is growing but because the nature of interactive campaigns allows for the delivery of previously unavailable services for the client: detailed metrics on visits, audience engagement and lead generation.

But digital agencies have yet to take advantage of that fact, Haven claims, citing a study of marketing agencies across 52 criteria that "revealed a market adept at handling today's digital campaigns but lacking in the thought leadership to drive more comprehensive brand strategies."

Haven references OgilvyInteractive, Avenue A | Razorfish, Sapient and Digitas as four of a handful of agencies most prepared to lead integrated campaigns, but he says the majority of digital agencies still have a long way to go until they can take on a leadership role. We asked a number of other industry experts how they're prepared to meet Haven's challenge.

Author notes: Leah Messinger is a freelance writer. Read full bio.

 

Comments

John Ellett
John Ellett March 12, 2008 at 1:26 PM

We started our agency 7 years ago with the belief that clients really wanted this debate to end and that they wanted a new type of marketing partner. More digital-centric than traditional agencies. More holistic in perspective than interactive agencies. More measurement-oriented than either. We agree completely with the Forrester assessment of what is needed and have built those capabililites. It turns out that clients really do like it. They would tend to agree that what is needed is not "digital shops leading" or "brand agencies getting more digital", but a marketing agency that can competently integrate all worlds and help them engage their consumers more effectively.

Kevin Doohan
Kevin Doohan March 12, 2008 at 9:58 AM

My experience is that interactive agencies are more ready to take the lead than marketers (and agencies) might expect.

When agencies collaborate and good ideas are welcome from anyone, I find the most *creatively* valuable idea can be likely to come from any participant and often from where you least expect it. However, interactive agencies have a unique *mindset* toward experience design, measurement, and experimentation that is meaningfully different from traditional agencies. Because of their unique mindset, interactive agencies will often end up in the lead if all participants start with an equal opportunity to lead.

I've seen it happen more than once and I expect to see it more in the future.

Mike Driehorst
Mike Driehorst March 12, 2008 at 9:19 AM

Great article (sorry I missed the Forrester report last year). Having been on both sides of the agency fence -- currently with an interactive one after 12+ yrs with a traditional one -- I've experienced and seen several points made in the article.

I think it's a great heads up on how traditional *and* interactive agencies need to grow. Hopefully, there will be less of a divide down the road as both types do expand/grow.
-Mike