Growth in Agencies Coming from Digital Side

Revenue Grows 8.6%, Propelled by Digital

This article title popped up in AdAge this week. Some of the most eye raising points made in the piece include...
- "Revenue for U.S. agencies -- advertising, marketing services and media -- jumped 8.6% in 2007 despite a tepid ad market. And for that, you can thank digital."
- "Ad Age estimates that the Big 4 ad firms -- Omnicom Group, WPP Group, Interpublic Group of Cos. and Publicis Groupe -- last year generated 12.3% of worldwide revenue from digital services."
- "Goodby, Silverstein & Partners -- Ad Age's 2008 Agency of the Year -- said digital services last year generated 52% of its revenue."

Three cheers for digital. Obviously these guys are talking about some major agencies, but what about the mid-tier agencies or even smaller, more nimble agencies?? Are they taking advantage of this definitive trend? Are they following in the footsteps of their larger competitors?

I would argue that understanding and even surpassing these large agencies in digital capabilities is the primary way that smaller agencies can compete against the 800 pound gorilla agencies.
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