Ad Age reports that advertising agencies are actively increasing investment in intellectual property related to marketing technology. To win advertising budgets, agencies are targeting advertisers seeking to deliver precise messages to consumer targets by offering tools that measure consumer psychology and maximize campaign effectiveness. A business model is expanding where agencies enter into monthly fixed-fee contracts for marketing technology, rather than traditional hourly-fee services.
Isobar, part of Dentsu Inc. Aegis Network, has developed a platform that analyzes campaign performance, including sales, across channels, and a product that automatically configures landing pages based on keywords users entered during searches. While initially developed for specific advertisers, both have been expanded for broader application and are now offered to multiple clients. Jeff Mailing, CEO of Isobar US, explains, "For example, if someone searches for 'convertible car rental,' instead of directing them to the rental company's homepage, we take them directly to the convertible car page. Providing users exactly what they want dramatically increases conversion rates."
Isobar currently derives approximately 3% of its revenue from intellectual property related to marketing technology. CEO Melling notes, "This was zero just two years ago. Clients prioritize whether they can actually reach consumers, making the intellectual property business highly promising," and plans to continue investing in it.
Elsewhere, Razorfish has seen its IP-related revenue increase from 1-2% several years ago to 3-4%. This year, 20% of newly acquired budgets stem from IP-related investments. Wunderman plans to increase its IP-related investments by 20% this year.
Source: Ad Age
Agencies Grow Intellectual Property Assets With Tech
