I read a very good and insightful article in today’s Adage, “Why Digital Agencies are Indeed Ready to Lead” by Jacques-Herve Roubert. I agree with his contention that Digital agencies are indeed ready to lead and as he points out, our company, Ascentium, is demonstrating that in fact with our relationship with Precor, but also increasingly so with some of our other accounts who are looking for to us for ideas and strategy and their traditional agencies for mass advertising.

The reasons for this are many and you pointed out some really good ones regarding where the energy, ideas and innovation is coming from. But the basic underlying reason is rooted in the business model of the big traditional agencies more than anything else. The traditional business model is based on revenue streams from media, not direct billable hours. This means that to be successful, agencies were forced into thinking about media as the prime distribution channel because that is how they make money. Digital agencies are not boxed in that way and as a result, they are able to look more broadly across channels and take a more customer-centric approach to communication than a media or product based approach.

Devotion to gathering customer intelligence across multiple channels online, offline and emerging social channels and then applying that to create customer experiences which produce trackable and measureable results is the key to our success at Ascentium and I believe that same can be said for the other great emerging digital agencies cired as well, like AKQA and TribalDDB. The big agencies are saddled with the innovator’s dilemma and while it won’t be the end of them, it certainly erects a big speed bump to innovation.