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Jupiter: Media companies compete head-on with agencies

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New York--The depressed economy is forcing many media companies to compete head-on with ad agencies for creative work, according to a new report from Jupiter Media Metrix Inc.

The report, titled "Agency vs. Publisher: Reintegrating Agencies into Alliance Deals," found the competition between agencies and media companies is shifting from media budgets to creative budgets.

With ad budgets shrinking, many media companies are expanding services they offer to advertisers, including creative services, to extract higher fees.

However, Jupiter warns that relying on publishers to report on and analyze advertising is "akin to a fox guarding the hen house."

The report can be ordered at www.jmm.com. --Kate Maddox

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