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Digital Is Top Revenue Generator For Advertising And Marketing Agencies In 2010

Written by Ken Gaebler
Published: 4/25/2011

Digital services are the top revenue generators for advertising agencies, signaling greater adoption by businesses.

As a result of the financial crisis and resulting recession, small businesses turned away from more expensive marketing channels and began adopting more cost-effective tools, especially digital ones.

Digital Is Top Revenue Generator

Small business news has repeated the utility of digital marketing strategies for this sector, and now research from Ad Age is showing that among the nation's advertisers it has grown increasingly prevalent.

In fact, the report found that digital services were the No. 1 generator of U.S. advertising revenue in 2010, accounting for $8.5 billion - 28 percent - of the market. This is up from 25.8 percent in 2009.

"Fundamentally, I believe that anything that's not digital will soon be digital or soon be very, very unimportant," Omnicom President and CEO John Wren told Ad Age.
The research analyzed more than 900 advertising and marketing services agencies to arrive at the results.

However, even if small businesses decide to jump on the bandwagon and embrace digital strategies, these initiatives could prove be virtually useless without a way to measure return-on-investment. This can be extremely difficult to measure and, thus, require new metrics, such as reputation management.

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