A Guide for Ad Agencies: New Media
The two big questions that ad agencies are asking:
“How do we price new media and what type of services should we offer?”
Joe Burton, COO of Universal McCann agency, explains:
“Our industry is facing the its most significant change since the invention of TV - the migration to Digital. Digital is unlike any other medium and should not be viewed using traditional benchmarks. The high-volume, low-dollar, high-complexity nature of Digital programs makes it the most labor intensive medium in the advertising industry.”
He explores the key drivers that contribute to the higher costs of Digital advertising and media agency services when compared to traditional marketing services and he stipulates that “these issues require resources and drive a cost of providing basic Digital services which is directionally double that of traditional “full service” agency fees, when expressed per dollar of media spend.”
There are small-to midsize ad agencies that are currently generating new business and income through new media. Here are a few similarities among agencies that are having success that may be of help:
- Agency principals are well versed in new media and are actively writing and speaking about it.
- Agency staff are also participating in new media and are conversant.
- Agencies are offering new media workshops, seminars and luncheons.
- They are “confidently” leading discussions about new media with prospective clients.
- Agencies can demonstrate their own participation in new media which is powerfully effective.
- Proposals are most often based on scope of work, a flat monthly retainer based upon an annual agreement usually at a blended agency rate of $125 per hour.
New media has leveled the playing field for smaller agencies.
Written by Michael Gass; originally posted on fuelingnewbusiness.com
Category Advertising, Marketing | Tags: Advertising,Expert,New Media,Television
By john Vutech on April 26, 2009
Overall, 52 percent think a television is a necessity. That is the lowest figure since that question was first asked in 1973.
The older you are, the more likely you are to view it as a necessity. Among those over 65, 68 percent think a set is a necessity, compared to 38 percent of those age 18 to 29. But both those figures are down from three years ago.
Similarly, the young are more likely to view a cellphone as a necessity, and ad agencies are taking televsison budgets and migrating towards sms text marketing
source: new york times