More data from periphery: Traditional ad units under pressure

A report found on Clickz today by Web research firm Borrell Associatessuggests that, “display and search advertising are losing ground to spending on online promotions and sponsorships.”

Of course, we agree, and cited just that in our post last week.

I am hearkened back to a few comments by reading the Clickz post today.

First, this posta that discusses scaling advertising in social media. I am still bearish on whether a standard ad unit is the lone roadblock to increased media spending. To this writer, the main challenges comes in terms of controlling my brand on content that I don’t control. Though I believe the lack of an ad unit contributes as well.

Second, the notion I’ve discussed a multitude of times when speaking about the power of widget companies. That is, if major brand advertisers are shunning traditional spots (in favor of promotions or immersive products), then the agencies that represent them need to move in this direction as well.
This will involve a herculean stretch for them in terms of production acumen and technology assets.
Clients will want to know who saw the ad, what engagement level they had, and what success metric the agency was striving for, not merely what the reach and frequency of the ad was.

It would seem to me that the first agency that gets there will reap the benefits.

Though that may take more than 3 or 4 years.

More commentary:

Why reach metrics are terribly antiquated


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