The Implications of the Internet on the Advertising Agency-Client Relationship

With the new millennium now upon us, advertising and the advertising industry, is in a state of transition characterised by various factors such as increased competition from specialist sources, more value-conscious clients, new media options and the fragmentation of audiences. Depending on the agency response, these factors can serve as either opportunities or threats to the relationship dynamics prevailing in the advertising agency-client relationship. This article focuses on one particular change dynamic - the internet - and explores Irish advertising agencies' response to it as a communications medium for clients. This article seeks to examine the extent to which full-service advertising agencies in Ireland offer advice and website design expertise as part of their value proposition to clients within the agency-client relationship. The findings suggest that the full-service agencies under study were not in a position to provide expert independent advice regarding internet communications to their clients in any meaningful or integrated manner. Implications for agency-client relationships are explored.