It’s a good time to be a web agency
Clark Kokich, CEO of Razorfish, one of the largest digital marketing and technology firms in the world just put up a blog post entitled Simple Math.
He talks about how digital agency fees are growing higher than the digital media spend. As some customers see this trend as “wrong”. Kokich goes on to say that it’s perfectly fine and going back would be bad.
The world of digital marketing is changing. Its moving away from buying media on the traditional outlets and moving into owning media on your own outlet or earning media on online social outlets.
If a $500k social influence marketing program (all agency fees) performs as well as a $10-million paid media program (10% agency fees), who really is being penalized? Answer: the media, not the client. Instead of being challenged, agencies should be applauded for building and managing owned media that delivers results at a fraction of the cost of paid media. – Clark Kokich