Verklin Projects Fragmentation Challenges

NEW YORK The march into the digital age is bound to challenge agencies to direct relevant ads to appropriate customers in a fragmented media landscape, Carat North America CEO David Verklin said.

Speaking at the OMMA Conference East in New York, Verklin said media’s increasing digitalization, which will give consumers more control, presents agencies with the need to target marketing messages to consumers scattered across hundreds of different media channels.

“We’re struggling with more information than we know what to do with,” Verklin said.

In the future, clients will look to agencies to manage the complexity and enable them to communicate with interested consumers. “Reach matters less and less in our business,” he said. “In the digital age, we have to manage thousands and thousands of placements.”

Verklin said Carat is recommending clients devote between 10 and 15 percent of marketing budgets to online. Currently, advertisers devote about 5 percent, according to Wenda Harris Millard, chief sales officer at Yahoo.

The broadcast model for advertising is quickly being replaced by a more targeted “narrowcasting” approach, Verklin said, with the goal to avoid “putting a PolyGrip ad in front of someone with a full set of teeth.”