“In this book, Mr. Burton explains that effective commission rates or reach and frequency targets used to measure traditional mediums have no correlation to Digital. The inputs and outputs are not comparable, and the high-volume, low-dollar, high-complexity nature of Digital programs makes it the most labor-intensive medium in the advertising industry. Burton explores the key drivers that contribute to the (seemingly) higher costs of Digital advertising and media agency services when compared to traditional marketing services, and he stipulates that “these issues require resources and drive a cost of providing basic Digital services that is directionally double that of traditional ‘full-service’ agency fees, when expressed per dollar of media spend.”
A new white-paper on digital advertising, written by Joe Burton of McCann, was just released. Read the full report on the AAAA site.