Agencies see a need for action in the online advertising market
According to information from the Handelsblatt, the competition between classic advertising agencies for the digital future is gaining momentum. For example, the French advertising holding “Publicis Groupe” recently took over the online agency “Razorfish” from the US software company Microsoft. The world’s fourth largest advertising group, to which agencies such as “Leo Burnett” and “Saatchi & Saatchi” belong, are expanding digital skills and responding to a general advertising trend.
“You have become a serious competitor in this field,” said Franziska von Lewinski, managing director of the BBDO subsidiary Interone, which specializes in online communication. In 2006, Publicis took over Digitas, the largest digital agency. With these acquisitions, the advertising group now wants to achieve a quarter of its sales with online advertising. In 2007 this is said to have been 4.7 billion euros.
Increased by the financial crisis, many companies are shifting their budgets from traditional media such as television, radio and newspapers in favor of online media. Because online advertising is far cheaper than traditional advertising. In addition, onliners would not produce “blow it out” advertising, as was common in classic advertising in the past, but rely on interaction and could therefore measure advertising success immediately. More and more advertising agencies noticed, however, that they had worse cards than large networks if they operated alone in the market. “One face to the customer” is therefore the phrase with which full-service agencies such as BBDO (previously with Interone and Proximity) or Gray (with Argonauts G2) advertise to customers. The need for action is great. “Small digital specialists will be bought up, development will pick up speed in 2010”, Lewinski is certain.