Social Networks a Threat to Agencies?

How do social networks and other emerging channels threaten agencies? Is this the start of the end for agencies.

A recent article from FT, Social networks threaten advertising growth, is one more in a long line of shots taken at agencies. At the heart of this and other articles is the idea that agencies are not evolving their businesses as people evolve their media consumption, entertainment and communication behaviors.

While the article focused on the UK marketplace, one point jumped out. Two-thirds of agencies are not ready for this change. Are one-third of agencies really ready for this change? If one-third of agencies are ready for the change, it is time for the doom-and-gloom coverage to end.

Most major advertising agencies have been slow to embrace new channels. New agencies and marketing services company provide these services, and either become major players or are acquired by larger agencies.

There is no doubt that as personal forms of communication become media channels, marketing and advertising will change. And with it, agencies will change. Agencies will come and go. But the fundamental position of agencies as strategic marketing partners will remain.