The shift to online advertising willÂ turn traditionalÂ advertising agencies upside downÂ says AOL advertising execÂ Dave Morgan. HeÂ tells AdWeek.com:Â Â “They’ve got overpaid television folks and underpaid online folks.”
In an articleÂ titled, Will Digital Cause Agency Shrinkage? Morgan saysÂ short term worriesÂ about recessionÂ should be partially offset by the unusual confluence of the Beijing Olympics and the U.S. Presidential election.
ButÂ the article paints a gloomy picture of advertising as an industryÂ ill-equipped to deal with theÂ disruptionÂ that has alreadyÂ hitÂ its communications brethren, theÂ news media and public relations.
“It is amazing how ill-equipped the agencies are to deal with what’s in front of them,” says Jason Klein, president of the National Newspaper Network, a 14-year-old joint-marketing organization thatÂ sells print ads into 16 industries whose advertising spend is dominated by television.
Thanks to Paid Content for the pointer to the AdWeek piece.