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March 20, 2017

Ad Agencies Face New Challenges

Adweek: Ad Agencies Build Consultancies to Meet New Competition


Last Friday’s newsletter cited an Adweek article about global consultancies buying ad agencies. Here’s the other side of that coin: a piece on ad agencies building out their consultancy practices. The grand point being, that technology and marketing are becoming indistinguishably intertwined. You probably knew that.

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Agencies Face Fresh Ad Buying Challenges


Even as agencies expand into consulting, they’re being challenged to do a better job at their core business of buying media. Third-party measurement of “walled garden” audiences in Google, Facebook, Snapchat, Pinterest and Twitter has been one sore point.  Another is preventing ads from running on offensive Web sites, in particular those owned by extremist groups that are effectively being funded by the ad revenues. Programmatic buying is the culprit, since ads are placed without a human deciding where they’ll be seen. Better technology to identify offensive sites will probably be the answer but it won’t be adopted without pressure from advertisers -- which is starting to appear..

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OnBrand Survey: 65% of Marketers Don’t Plan to Invest in Advanced Tech This Year


Enough about agencies. Here’s a nice survey about what marketers are up to. OnBrand Magazine surveyed 562 global brand managers and found their biggest challenges are proving ROI (34%) and collaboration between departments (14%).  Identifying necessary technology came in dead last at 2%, even behind “other”. Although 43% consider themselves early adopters of technology, just 35% planned to actually invest in 360 degree video, virtual reality, chatbots, or other advanced technologies this year. Hmm.

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