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The Future Of Agencies; Netflix Not Making Up Losses

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whichwaytogoHere’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

Is The Sun Rising Or Setting On Agencies?

Writing for Media Village, MediaLink founder Michael Kassan gives his guess at what’s to come of creative, media and tech agencies as their long-established roles become ever more juxtaposed with technology. Kassan writes, “My money is on shops becoming more like advisors,” with the current agency model shifting to a more consultative “consigliere” service. The competition for accounts is unprecedented, but we could see different sectors of the ecosystem join up (see: Truffle Pig), or new twists on the traditional agency model (i.e., Dentsu Aegis). Read more.

Cutting Back On Cord-Cutters

Some broadcast networks are pulling away from Netflix, as the incremental revenue it provides fails to make up for an accelerated loss of pay-TV subscribers. Time Warner CEO Jeff Bewkes recently said, “We don’t want that money to replace the more money that someone else was paying us.” According to David Crow at the Financial Times, TV execs also see a streaming service like Hulu as less of a threat because it’s owned in part by Comcast, NBC and Walt Disney, who have TV’s best interests at heart. Read on.

Facebook’s Window On The Web

Facebook said last year that it would start using web browsing data from its plugin network to enhance advertising. But it hasn’t moved forward with those plans – until now. Read the blog post. Tom Simonite at the MIT Technology Review calls it “a new firehose of valuable and controversial personal data.” The connection between Facebook’s like button and the web has been controversial in Europe, so we’ll see how users and regulators react to the new protocol. More.

Barons Of Industry

Comparing the data-driven digital economy with the oil, railroads and manufacturing that transformed America’s capitalist system at the turn of the 19th century, Robert Reich writes at the Times that big tech has become far too powerful a player in the American system. Like the vertically integrated companies that owned factories, goods and transportation, companies like Google, Microsoft and Amazon are bordering on monopolistic. Will US and European regulatory bodies rein in the titans? Read it.

$ocial Renaissance

Social media ad budgets are rising sharply, but there’s still dispute over whether the medium is a sales driver vs. a brand/engagement play. Coca-Cola has previously released reports showing social media had no measurable impact on sales, but Ad Age’s Jack Neff writes that leaders at Unilever see a lift. The article highlights digital’s established benefits (hypertargeting over TV’s blanket appeal), but it’s also worth noting the strides social media platforms have made in enabling commerce and products like buy buttons. Read on.

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