Not enough agencies are adjusting to the online world warns IPA
I caught an interesting article in the Financial Times which outlines a report from the IPA on how media agencies are slow to embrace the online world.
Quoting from the report
The Institute of Practitioners in Advertising, which will publish the “Social Media Futures” report compiled by Future Foundation next week, has warned that advertising agencies face growth of just 1.2 per cent a year by 2016 if the industry fails to tackle the changes to the media created by sites such as Facebook, YouTube and Twitter.
But not enough agencies are adjusting to the online world, the IPA warned. In its worst-case scenario, the resulting decline in paid-for advertising space could see £16m ($23m) of revenues lost by the industry by 2016, if agencies fail to create new products and services to cater to the social media world.
However, the report says that two-thirds of that decline could be made up by creating new forms of web content that contains branding messages, and by analysing the data expressed on the web.
Our take: Social is here. Agencies, and their clients need to be using social media to really understand it – consumers are!