Agency bosses too old and change resistant, claims Sorrell(Advertising Age) NEW YORK - WPP chief executive Sir Martin Sorrell claims that brands are not spending enough online because the people who run their agencies are too old and resistant to change.
The boss of WPP, parent of OgilvyOne and Wunderman, claimed that brands are being preventing from spending online due to a lack of understanding on behalf of the agencies handling their media budgets."
"WPP's [five year] strategy can be summed up in one simple sentence: new markets, new media and consumer insight," he told ad:tech delegates.
THE CRITICAL CONVERSATION:
RE-THINKING THE MEDIA MIX - WHEN SHOULD INVESTMENTS BE ALIGNED TO MEDIA CONSUMPTION?
With all due respect to Sir Martin, there are limitations in our present approach to digital media. Catalogs and other mailed communications deliver more more revenue per touch - and more certain revenue -- than digital media. The first wave of digital communications has hit a saturation wall of effectiveness. While email is scarcely 10 years old, remember, "You've got mail," open rates and end-actions rates are sinking under the volume. Ditto for online display ad banners. They didn't exist five years ago, but OA response is down by 50%, and network CPMs are in the tweens to single digits because of excess inventory. UHIPs like MSN home page reach eyeballs but at a negative ROI for most advertisers. And while pre-roll video is hip, hot and showing good numbers, there a lot of questions of exactly what constitutes an "interaction". Viewing through completion is much lower.