Digital Advertising Landscape: CMOsテ?? & CPOsテ?? Challenges and their Expectations from Digital Advertising Agencies


By: Prashanth S --

03 July, 2012

Digital Advertising Landscape: CMOsテ?? & CPOsテ?? Challenges and their Expectations from Digital Advertising Agencies

A fluid landscape prevails in digital advertising industry as there is no winning formula for the marketers. The digital advertising industry is evolving at a rapid pace with the evolution of new technologies. The holding companies and digital advertising agencies are competing with each other to win clients. On the other hand, marketers are trying out a trial and error approach to align their digital advertising strategy to their brand strategy. Though digital marketing has enhanced customer engagement it has also increased the burden of the C-level executives. While the CMOs are having a tough time in allocating budgets across traditional and digital channels, CPOs are struggling to engage with the best fit digital agency and to consolidate their supply base and bridge the gap between the traditional and digital advertising. This whitepaper captures the following Evolution of the digital advertising landscape in the future Challenges faced by CMOs in leveraging digital advertising services Challenges faced by CPOs in procuring digital advertising services Clientsï¾Ãƒâ€šÃ‚Æ’?? expectations from digital agencies A fluid landscape prevails in the digital advertising industry as the industry is evolving at a rapid pace while; holding companies and independent digital advertising agencies are struggling to catch the market place. In the past digital advertising was viewed as yet another marketing channel that marketers could leverage. The advent of social media, Web 2.0 and core marketing activities like PR turning digital marked the beginning of the digital era. Holding agencies like WPP, Omnicom, Publicis, and Havas have realized that digital advertising would be their bread winner in the near future. In the past holding companies outsourced the digital activities to niche agencies which led to the emergence of digital advertising agencies in the market. As traditional advertising model became antiquated, holding companies started acquiring digital agencies across regions in order to build their service capabilities. At present, 60% of the CMOs are not satisfied with the quality of digital services provided by holding companies. Holding companies offer digital services in a traditional way. They donï¾Ãƒâ€šÃ‚Æ’??t help the client to bridge the gap between traditional and digital advertising mediums. Recently few marketers who had consolidated their advertising spend to one or two holding companies have unbundled their digital activities from holding companies and have engaged with a roster of independent digital agencies. So how would the industry evolve in the future? The holding companies would continue to acquire digital agencies to strengthen their breadth of service offerings and global presence while independent agencies would prefer to remain independent and continue to expand their service portfolio. An intense competition is expected between the holding companies and the digital advertising agencies in the near future. Agencies with high adaptability to the evolving technological trends would lead the market place.


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