In the age of digital marketing, Ad agencies now need to work harder for slimmer commissions:
1st: Digital advertising has been fragmented, however it’s now consolidated between Google and Facebook, giving ad buyer less clout.
2nd: Clients (really big ones) can bring digital ad-buying in house. Digital media vehicles offer data to the client – they got access to the same tools the agency has, unlike traditional media (TV, radio, print).
Agencies still offer neutral, independent advice. They just have to work much hard to earn a buck.
That said, companies like Proctor & Gamble have held the Duopoly (Facebook and Google) accountable by cutting $200 million in advertising spending until they can demonstrate efficacy.
