Why Agencies Must Find An Interactive Business Solution
- According to Forrester Research, over 85% of companies look outside for web/interactive work – and the agency is being called upon to deliver the assets
- The interactive demands of business are dramatically greater than they were in the near past
- The ad agency landscape is highly fragmented; dominated by small firms with limited interactive capabilities
- The effectiveness of traditional marketing is quickly declining
Massive disruption in Print, Radio, TV
- Content sharing & consolidation, moving to online mediums rapidly
- Print Yellow Page usage is eroding at the rate of 10% in 2008 and erosion will increase with each subsequent year
- Online Magazine traffic continues to surge
- Increase of 8.5% in Q2 2008 over Q2 2007
- This increase is more than double the rate of growth for the overall U.S. Internet audience, which rose 4% in Q2
- Stickiness also up 21.5%
Now more than ever, business solutions using internet-based technologies have the ability to achieve companywide objectives
- Increase Sales
- Lower Operating Costs
- Automate Processes
- Enhance Communication
- Improve Collaboration
- Increase Customer Satisfaction
- Gain Competitive Advantages
During difficult economic times, companies must find ways to reduce costs and increase revenue in a simple manner
Why In-House Teams Are Failing
- The team adds significant fixed expenses
- Low ROI
- Agency cannot adjust for scalability
- Must turn away business during peak times, wastes overhead during lean times
- Staffing is difficult, high turnover rates
- Typical agency developers are very limited in capability
Therefore, the majority of agencies chose to produce interactive work out-of-house to a local webshop
Why Webshops Are Failing
- The webshop landscape is highly fragmented, dominated by small firms with limited business and technical capabilities
- The capability, reliability, and business ethics of these firms has been very poor
- Webshops have proven to:
- Deliver late
- Deliver over budget
- Produce poor quality work
- Compete with agencies