Investors see opportunity in the traditional advertising agency game and are looking to pour millions into disrupting this lucrative industry. That was the key takeaway from a session yesterday at the OnMedia NYC conference, according to MediaPost.
Companies that can apply sophisticated targeting and tracking technology to social networks and other user-generated forums to help unlock ad spending stand to gain.
While the most profitable agency replacements have largely been topic-based to date, it’s only a matter of time before geography catches up. Users want local information – even advertising – if it’s relevant to how – and where – they live. Can media companies innovate fast enough to move into this opportunity before VC-backed startups get there? For some, the question is more complicated because it will mean competing directly with agencies that still serve as their own little cash cows.
