Brands 'should invest more in online digital marketing'

Brands are not spending enough online because the people who run their media agencies are too resistant to change, according to an expert.
In his keynote address to the industry event ad:tech New York, Sir Martin Sorrell, chief executive of communications group WPP, said agencies handling brand´s media budgets lack an understanding of how to handle media budgets, resulting in underinvestment in online spending.

"The people who run agencies tend to be of an older vintage - to put it politely. They tend to be resistant to change and want to spend the last three to four years of their careers travelling around the world rather than dealing with fundamental strategic issues on a daily basis," Revolution Magazine quotes him as saying.

He also pointed out that brands invest an average of just 13 per cent of their marketing budget in online activities such as search marketing or online direct marketing, despite the rapid increase in digital media consumption.

Ad:tech is an event for digital marketing which takes place in cities throughout the world, including Sydney, Paris, London, Singapore, New York and Shanghai.

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