Interweb Gold Rush Continues

The Wall Street Journal (paid sub. req.) reports that Internet advertising has grown into a $16.9 billion industry. Lots of firms are scrambling for a piece of the action—WPP, Google and Microsoft have all made recent headline-grabbing acquisitions that speak to the ongoing industry shakeup.

For decades, advertising has been a relatively simple process dominated by a clubby world. Long-established advertising and media-buying agencies, most owned by half a dozen global giants, make TV or print ads and negotiate for airtime or space with TV networks or publications, most owned by a handful of other big media companies.
But “the Internet was built on little companies,” says David Kenny, chairman and CEO of Digitas and digital strategy chief for Publicis Groupe SA. “Now that we’ve got big advertisers putting money on the Internet, they need big scalable operations.”
Ajaz Ahmed, chairman and co-founder of independent digital marketing agency AKQA said, “The agency of the future will be half a software company and half an entertainment company because that’s the new landscape.”

I agree with Ahmed wholeheartedly. Kenny’s comment, I’m not so sure about. Small companies can serve large spenders, in many cases, better than a so-called “scalable operations,” also knowns as big agencies.

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.