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Do traditional agencies get it-interactive, that is? Or do interactive specialists still have the edge? Marketers tell who they work with, and why.

GENERAL MOTORS CORP.

Interactive agencies: Electronic Data Systems, Plano, Texas; CKS Interactive, Cupertino, Calif.; Campbell-Ewald, Warren, Mich.; D'Arcy Masius Benton & Bowles, Bloomfield Hills, Mich.; Leo Burnett USA, Chicago; McCann-Erickson Worldwide, Troy, Mich.; Hal Riney & Partners, San Francisco; N.W. Ayer & Partners, New York and Detroit.

"Our [traditional] agencies are really starting to step up in these areas. The big challenge is to combine the technical aspects with the creative aspects. It was a major challenge that we had here, but I would say we're

more than satisfied with our agencies in this area."

-Philip Guarascio, VP-general manager in charge of North American marketing and advertising

FEDERAL EXPRESS CORP.

Interactive agencies: Online Focus, Los Gatos, Calif.; Wells Agency, Minneapolis

"Agencies today barely have the learning curve on how to execute concepts in a network environment. We thought Online Focus had excellent creative skills and are superior at what they are able to produce.... Agencies can serve clients better by having better knowledge of not just the technical issues. If they are coming from a technical base, they need to be more grounded in business issues. Everything is not technical in nature."

-Robert Hamilton, manager, electronic commerce marketing

PROCTER & GAMBLE

Interactive agency: Grey Interactive, New York

"We evaluated a number of agencies and selected Grey as our lead agency on new media. Grey was really on target in terms of their understanding of new media and applications of technology. They're helping us chart our course, working with us to develop our corporate Internet presence, and they're

doing great work."

-Robert Wehling, senior VP-advertising

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