UKNM: Web Agency decline and fall

[Stephen Byrne]

PAA31738

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ownerchinwag [dot] com

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uk-netmarketingchinwag [dot] com

[Moderator's Note: to put this in context and explain the addressing,

Stephen also posted this to a number of editors of marketing and new media

publications as well...comments anyone?]


The Editor


Dear Editor, 


Just a few comments on the flurry of opinions and explanations on the

decline and fall of new media agencies. 


First of all, Online Magic, AMX Digital, WebMedia, Poppe Tyson,  Denovo,

Smartnet, Lowe Digital, Smartnet, CHBi and the scores of SOHO operations out

there that have either fallen over, been gobbled up or merged by ominivorous

US corporates are all victims of what appears to be a short tem

concentration on web site creation alone rather than technical and marketing

partnering. 


Our Interactive Division is one of the UK's most successful with close to �1

million in billings in its first year but I'm sure you've never heard of us.

But you'd be sure to have heard of many of our clients including Swiss Re,

Nortel, Commercial Union and Marks and Spencer. 


The thing seems to be that if you've got sexy consumer brands as clients

then everyone gets excited and knows who you are. Ours are mostly in

financial services and telecommunications but we're providing everything

from full strategy for intranet through to multimedia graphics.


So its no news to us that web agencies are redefining their position to fit

into the just as risky, just as cash flow-driven and just as untested, the

murky waters of web consultancy. 


The problem is that the web as we know it right now is less than five years

old and, of course, everyone's working out how to make money from it. 


The one's that survive and the one's that are making money, like us, already

know that you just can't design a site, you have to understand where it fits

into the marketing strategy and you have to know the web is NOT like

everything else we've ever known. 


As the web is an international market of one, defined by its user profiles

and other less known and understood demographics, it will years before

anyone can truly assess and advise on what works and what doesn't on the

web. So the idea that you can turn from being designers and builders of web

sites to become the new architects of web strategy and consultancy, while it

seems to be a natural progression - is just as likely to beset by the same

problems as it started out to avoid. 


Meanwhile, like Hollywood in the early part of this century we are just

beginning to understand more about what the web does, what it can do and how

it can be driven to make money. There will be many hits and there will be a

few stars and the technology will keep on improving and we will move on. 



Yours sincerely,


Stephen Byrne

Group Marketing Manager

Revolution Ltd

9 June 1998


Revolution Ltd

700 Great Cambridge Road

Enfield Middlesex EN1 3EA

0181 267 1040


web: 	http://www.revolutionltd.com

email:

stephen [dot] byrnerevolutionltd [dot] com

Stephen Byrne

R|EVOLUTION


E-mail:

stephen [dot] byrnerevolutionltd [dot] com

Web: www.revolutionltd.com

Direct dial: 0181 267 1040

Tel: 0181 267 1000    Fax: 0181 267 1066