Forrester Research drops a stinker

Forrester Research fouled the digital marketing realm yesterday with its report, "The Forrester Wave: Interactive Marketing Agencies." I suppose it's in Forrester's business model to create this kind of analysis, but the end result isn't any more useful than Slide.com's Top Friends Facebook app. After reading the ad trades' reactions, I feel like I'm back in junior high school.

AdAge tries to be diplomatic: "To Lead Overall Brand Strategy, Digital Shops Have Much to Do"

Adweek (surprise!) goes negative: "Forrester: Web Shops Not Ready to Lead"

Granted, we are at year's end. So a listing of which digital shops are or aren't "ready" to lead client brands on overall strategy probably seems natural. Right alongside "Which Traditional Agencies Still Haven't Got A Clue About Digital" or "Which Marketers Continue To Blame Agencies Both Traditional And Digital For Their Own Cluelessness In Marketing." (Can't wait for those reports and lists, Forrester.)

I'll admit I haven't read the full report. I don't have $795.00 to spare. (Anyone else have it and want to send it my way?) So I'm curious about how the agencies were, "evaluated on 52 criteria that included agency tools, techniques, strategic capabilities, planning process, measurement and emerging channel experience and expertise," according to AdAge. Wouldn't it be useful, perhaps even audacious for Forrester to post those 52 criteria on a public wiki, perhaps even allow commenting? And will those same criteria be used to measure the same agencies again in 12 months? You know, like in a real analytical inquiry?

Adweek quotes Brian Haven, senior analyst at Forrester Research and author of the report, "The interactive agencies are in a position where all their staff is focused on executing on digital," he said. "They need people who understand that broader relationship between online and offline media."

Those are broad statements, Mr. Haven. And they're absolutely untrue.

When I interviewed for a job at Digitas/Boston two years ago, their primary interest was my ability in traditional advertising. I've got acquaintances at AvenueA/Razorfish with 15+ years experience in TV and print and many good friends at OgilvyOne/Interactive with killer TV and print books. These "digital" agencies have strong, experienced talent in traditional realms. Are they 100% focused on executing digital? Of course not.

And to suggest digital agencies today, right now, lack, "people who understand that broader relationship between online and offline media," is patently false. I can't wait to see the analytics, the footnotes and the proof in Forrester's report that pretends to back up this claim. Have you not met Jan Leth? Or David Kenny? Or read any of David Armano's insights?

Adweek quotes Mr Haven again, "interactive agencies have not yet proven they have the capability to manage brand strategy." You read that, and you might think R/GA was absent from the room when the whole Nike+ project was developed.

On the positive side, notes AdAge, "the report suggests interactive agencies are better positioned to take over brand strategy than traditional agencies because of the data and insight they are able to cull from interactive channels and because consumer behavior is shifting toward such channels."

And there's no reason why traditional shops can't acquire that experience, too. Or even marketers.

I'm curious what use or good can come from a report like this.

- - - - - - - - - -

UPDATE:  David Armano's written an insightful and compelling manifesto in response to Forrester's report over on the Critical Mass "Experience Matters" blog. Definitely worth your time to read and share!

ANOTHER UPDATE:  As expected, Forrester has no mercy for traditional agencies either. (Link to the abstract of their full report.)

Comments

[DA]

Tim, I have basically written a manifesto in response to all of this and I'm hoping to get it approved for CM's blog. Fingers crossed.

That's great news, David! If and when your manifesto gets approved, I'll add the link to my original post.

I also got a note from Jan Leth saying that Ogilvy was basically happy with the report because their "grades" were good.

In thinking about this for 24 hours, I do agree that some form of analysis of the leading industry players has merit. But I still stand by my complaint -- that this kind of report doesn't play fair between traditional and digital agencies. Suggesting that digital shops, on the whole, can't lead a client strategically (and thus implying that traditional shops can) is unfair and untrue. Where's the balance that takes traditional shops to task for their inexperience in leading strategy that includes digital?

Tim

[Joel MaHarry]

History and the larger share of billings are still on the side of traditional advertising.

History aside, I imagine we'll continue to see this kind of dim analysis and lazy coverage in our trades until the bulk of marketing dollars begin flowing toward digital. As they inevitably will.

An important point -- both the Forrester report and the news coverage posit an agency world that's split between traditional and digital. That's just false and out-of-date. Agencies -- some, anyway -- are evolving. I'm CD at a shop that seamlessly brings together on- and off-line. And we're certainly a very small part of a larger trend.

Marketers, too, are evolving. Their expectations are greater. I see more clients who demand agencies that can execute strategy and creative in any discipline.

The whole idea of what an ad agency does or is has changed radically over the past decade (to the point where the term is obsolete -- any suggestions for a replacement?) That's a fact that many analysts and journalists have yet to catch up to.

[Chris]

we are in the middle of a paradigm shift. my client (unnamed GM division) is slashing their TV budget (local, national) by 40%, and putting the dollars toward interactive. they are increasing their LMG spend by 140%, and OLA by almost 50%. however, the strategy still floats down river to us digital peeps. i have worked for the traditional shop, and now at digitas. from my vantage point - it comes down to a 'we are not sexy factor.' i hate to sound glib, but - we are eggheads. the digital shops may lack the grace and panache of the traditional shops in generating emotion. not having a 4th wall on the internet, it is difficult to engage from an emotional pov.