I read a great study recently from Forrester Research that confirms everything I have been hearing from larger companies for years. The big agencies are in trouble with the new media of internet, blogs and social media, and are starting to lose their grip on corporate advertising budgets. Big agencies still account for over 60% of marketing budgets, but that is not going to continue indefinitely. Two things that came out of the report that I found interesting:

-21 % of agency clients would recommend the agencies to others. That means that 79% would not.

-76% of clients had no way of measuring ROI from their agencies of record.

This tells me that most clients feel that they are getting a raw deal, but stay with the status quo. They have no idea of the return, they just keep spending, because that is what they have always done.

The question I have is why? Do these fortune 100 companies have any idea what a company like mine could do for them with even a $10m budget? Obviously not, but that is starting to change. Blogs and social media give small and large companies alike the opportunity to engage in inexpensive do it yourself advertising. Perhaps more marketing directors will come to realize that blind loyalty to big old agencies is not helping their bottom line.