It has long been my view that Big Brands will adopt Looksmart's RTB 'advertising solution'. (Its a simplistic API connection into the growing publisher base within the Co's own [owned] independent marketplace & an interesting partner for all the Yahoo Partners - in addition to Google's own publisher network),thereby allowing them to then apportion part of their 'spend' in this more easier, direct manner.
Simply by cutting out agency fees, they'll be enabled to target audiences (@ scale) and will then realise a greater ROI (return on their investment), in their doing so. (A wider reach.)
With a 'standard' management 'commission' (circa 20%?) always/only being deducted (for Looksmart), more of their 'spend' will then get to constantly trickle through to publishers, within the OPEN marketplace.
In a great Digiday article ["The Agency Disintermediation Risk"], the author (from Young & Rubicam advertising in New York) Rick Liebling also feels that this (or, similar to my above), will get to be so.
He goes so far as to say: "If agencies don't get their acts together, they might be left behind"
< "It's far more likely that brands will find success dipping their toes into the world of marketing. - Market forces have made it easier, and cultural forces have made it desirable, for brands to engage consumers in different ways, either directly or in ways that can easily circumvent the traditional agency role. The signs have been there for a little while now.">
I'd suggest that agencies have a need to 'consolidate' and to do so very quickly and to take 'ownership'-before brands do it for them, is my 'tip'.
Just an opinion, as always.
LOOK: At 3:19PM EDT: $0.90 0.00 (0.00%)
ps; "Will IBM Crush Madison Avenue?"
Disclosure: Long LOOK