Advertisements should deliver more value, firms to agencies ....This was the statement which is becoming a nightmare for the Ad agencies all over the world... The worlds top five advertising companies had 2008 revenue of $44 billion, according to industry publication Ad Age.
P&G and Coca-Cola are leading the switch to pay ad companies for the value they bring to a brand, making them more accountable.
Some analyst say this is harmful for the ad agencies and they are very much against it. The practice may shave half a percentage point off revenue in the shortterm .The economic crisis emboldened advertisers to demand results before paying agencies, which can lead to lower ad sales and more competition.
For Example-The latest Sprite online commercial which proved to be a big hit in the online market....making waves all over....
Companies are looking now towards value advertising by paying accordingly....the positive side of the coin is the advertising companies will also be getting a certain % of the increased sales affected through advertising....(P&G claims to give 10%).....
Internet advertising can be called as the revolutionising this concept in which the ad revenues collected by advertising co.are according to the clicks .....
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