Today while reading economic times. I saw an ad from an IT web design firm looking to buy an established advertisement agency, the first thing it made me think was how advertising agencies have started to give web design firms run for their money by wining most of the big online initatives. The problem with web design firms has been when most of them started they had only way to evolve further, which was to become an IT consulting firm. But now with internet being established as an effective medium for reaching to consumers it was more easier for advertising agencies to take their creative skills to the newer medium.
With advertising agencies proving their effectiveness in creating quality web design projects the web design firms have found new paths to grow. They are looking to reposition themselves either as internet marketing firms hence need to acquire advertising/brand building skills from offline counter part ad agencies. We have earlier also covered in this blog about IT firms starting advertising agencies example Smile Interactive’s initative Qusar Media etc. This is the only way forward for plain simple web design firms to either reposition themselves as Internet marketing firms or alternatively move higher up in the value chain to become an IT Consultant or Staffing agencies like other firms in business.
Prediction : valuation of advertising agencies will increase with cash chasing IT firms being made available for acquisation of such firms for growth of IT firms.