May 21, 2007
It’s a Server! It’s an Agency! No, It’s Microsoft (or WPP…)
So what to make of this latest rush for bigger fish eating big fish or for that matter, Razorfish? For one thing, it means that the definitions of agency or media buying firm or media technology firm really don’t mean anything.
And conflict of interest is beginning to look quaint. Will agencies that own serving companies favor their clients? How can they not?
In the end, consolidation probably rationalizes the online ad market and brings better price/value to the advertiser. Certainly, banner ads will be more cost-effective as will search. And acquisition of Right Media and others means that some form of rationalization is coming in the Cost per Lead space as well.
The question is whether the ever-larger players can really pull off a consultative sale, bringing the customization leads programs require to boost ROI. Just as in search, vertical knowledge commands a premium. Whatever the result, the advertiser will have more choice of lead provider and program – and the numbers will tell the story.