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April 6, 2006 12:05 PM PDT

Ad agencies still living in the past

by Mike Yamamoto
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It's been a rough couple of weeks for the online advertising business.

Trying to capitalize on the grassroots video craze, some companies have encouraged homemade ads for their products--only to find that they don't always send the most flattering message, as GM learned. (Some bloggers have floated conspiracy theories about the incident, but we'll leave that for another day.)

A few days earlier, News.com showed how other companies were unwittingly advertising their wares alongside racy content, an issue later picked up by the Wall Street Journal as well. The bottom line? These incidents are only the latest examples of Madison Avenue's long-standing ineptitude in Internet advertising. If Jurassic advertising agencies had taken the medium seriously a decade ago, they may not be so far behind the curve today.

Blog community response:

"It's fascinating to watch the megalithic dinosaurs in advertising vent about the unfairness of it all. Somebody changed their world, and they're not at all happy about it. In point of fact, they should be happy they still have a chance to turn things around...even if it is one minute to midnight."
--RepMan

"They give lip service to online and emerging media but they don't get it. Adding an 800 number or a URL to an ad is still considered a slight to the creative team. The notion of sequencing, simulcasting or integrating messages or audience segments among media is a foreign idea which is perpetuated by siloed departments and competing units."
--Manhattan Marketing Maven

"Whether it's a media conglomerate, ad agency or P.R. firm, everyone is looking for the Next Big Thing as the technology revolution makes innovators and execs quick on their toes to keep up and stand out."
--Casey Westlake

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