Excerpts from: Puget Sound Business Journal (Seattle) - August 25, 2006by Heidi Dietrich, Staff WriterOnline advertising, just a tiny sliver of the ad business only a few years ago, is growing so fast that many local ad agencies now rely on it for at least half of their revenue.
The trend is seen around the country. Ad industry research firm TNS Media Intelligence reported this week that overall ad spending declined 0.3 percent in May as compared with a year earlier -- the first decline in four years -- but online spending rose 18.9 percent, to $793 million.
Advertising firms say clients now expect a multi-faceted campaign with online as one of the key components. Jim Copacino, president of Seattle-based Copacino+Fujikado, said ad firms and clients alike want to reach a consumer in as many ways as possible, meaning the combination of online and traditional media is inevitable.
Dave Remer, CEO and creative director of Seattle-based Remer Inc., said no ad firm could survive without Web expertise these days. "You just can't have an agency stop short of the Web," Remer said.
Online advertising has become particularly desirable to clients, ad execs say, because interactive metrics allow companies to know how consumers are responding to ads. Click-throughs and page views are immediate feedback for how a campaign is working.
"Online is hot because it has a lot better metrics than any other medium," said Tom Horton, CEO of Horton Lantz & Low.
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VBRs & HALF-BAKED:
- Overall ad spending is down, but Online Ad buys are UP.
- Take Don along to help educate your agency clients -- THEIR Clients are asking for web/interactive, but many agencies aren't knowledgable enough to suggest effective strategies.
- If measurement is key, suggest clients use FanWord or MixWord.
- Copacino's quote in the article is dead-on -- it's the inevitable COMBINATION of mediums (Traditional and Online) that will make the difference.
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