Interactive Agency Revenue Skyrockets At Traditional Agency Expence -advertising Tides Are Shifting
According to this article in Advertising Age:
In 2006, U.S. agencies collectively generated less than half of their revenue — 46.4% — from traditional advertising and media planning/buying, with the rest coming from a range of marketing services including digital/interactive, direct marketing, sales promotion, health care and PR. Marketing services grabbed 53.6% of U.S. marketing-communications agency revenue. That was up from 51.5% in 2005, the first year that marketing services topped advertising/media.
The change here is significant to say the least:
Agency revenue from marketing services rocketed 13.1% to $15.1 billion, the strongest growth since the recession, according to the 63rd annual Advertising Age Agency Report. Agency revenue from traditional advertising and media rose just 4.2% to $13.1 billion, the weakest growth since 2003, the first full year of the advertising recovery.
This further documentation of what we have been saying here for a long time: the times are changing, and the main-stream media is loosing the lock on content production and audience share they have enjoyed until now – this is not a temporary change; all media is moving to interactive media, and the shake-up is real!
Where is it all going? Some of the huge agencies will survive and change, but some will not, and all of that lost revenue, as you can see, is up for grabs: also in flux is the viewer and listener market share that is shifting, and the business that can be gained by reading the market, and getting there first – OUR SPECIALTY!
2 Responses 
Leave a Reply 
Very true. Traditional marketing can not produce what it once was capable of producing. The days of barraging people with advertisements have given way to ‘inbound’ marketing. It makes a lot more sense to target people that are already looking for your goods or services.
Gday thanks to you for the last cool entry. That was extremely heart felt.