Taking a granular approach to all elements of digital advertising, from calculating user values to testing ad effectiveness, can help all of us unleash the potential of the app economy.
A decade ago, amidst the smoldering ruins of Dot Bomb industry carnage, I started a little agency called Traction with some friends in the spare bedroom of my apartment.
Ten years later, we've accomplished more than I ever expected to. We've worked with some of the world's greatest brands. We've been on the Inc. 5000 twice. BtoB Magazine named us either the #1 or #2 interactive agency in the country three times in a row. I'm proud of all that, but I won't lie. It's been a rocky road with some serious challenges.
I just left the iMedia Agency Summit in freezing-cold Scottsdale, Arizona and it was a great event. Lots of energy and excitement in anticipation of what's to come in 2010.
So, what is to come in 2010? Throughout the event, there has been a series called "2010 Trend Watch" where thought leaders identified issues that would be important to marketers in the coming year. I spoke this morning on The Commoditization of Agencies.
What do I mean by commodity? According to Wikipedia http://en.wikipedia.org/wiki/Commodity, "A commodity is some good for which there is demand, but which is supplied without qualitative differentiation across a market."
Things like paper towels.
I believe that agencies are becoming commodities and if we don't change how we measure our value could be in danger of extinction.
Ironically, Dave Smith from Mediasmith spoke yesterday about "Demand Platform Technologies." He predicted that they will allow agencies to plug directly into exchanges making ad networks obsolete. Anyone who has ever walked the floor at AD:TECH knows that ad networks are already commodities. Why would media agencies want to assume that role?
The reality is that media agencies are already undifferentiated.
I had lunch with... Read more