ONLINE-ADS>> The future of the advertiser/agency relationship

John R. Fess (john_at_poweragent.com)
Mon, 30 Sep 1996 16:58:44 -0700

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Ken Bond wrote:

>Agencies make their money on network and the more expensive the more the
agencies
>like it - could it be the web is not costing enough to justify the time in
>making it work?

The answer to Ken's question might be "yes" but only for those agencies who
continue to charge a percentage of media (or other) purchases to make their
money. This may have been OK in the world of mass marketing but, now that
technology allows very tightly focused and even one-on-one marketing, the
motivations of an agency which continues to charge based on a percentage of
media purchases must be highly suspect.

On the other hand, there are some agencies who "get" the interactive world
and provide value to their clients in a different way. Instead of making
money off a percentage of ads placed, they charge professional fees to
assist their clients in understanding how to use the web and other media as
effectively as possible. If the best course of action is _not_ to buy web
ads, then that is what such agencies will recommend. What a refreshing
concept! :-)

Winners on the web will be smarter about how to use it effectively and any
agency which helps an advertiser get smarter is providing real value --
regardless of how much advertising is ultimately purchased.

Any other thoughts/feelings/comments about agency services:
What value do they claim to provide today?
What value will they need to provide in the future?
Who "gets it" and who doesn't?

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