ADVERTISING AGENCIES ARE QUICKLY ADOPTING INTERACTIVE TOOLS

Almost 90 percent of the advertising agencies responding to a
recent survey by the American Association of Advertising Agencies
(4As) said they use interactive media in some way.

About three out of four responding agencies said they are
building or maintaining Web sites for their agencies, and nearly one
quarter have created Web sites for new clients, who have not yet
turned to the agencies for traditional advertising services.

With the data showing that most responding agencies have been
involved in interactive projects for less than two years, 4As
president and CEO O. Burtch Drake said the results confirm that
"interactive advertising is developing at an astounding pace among
[4As] member agencies."

While PR NEWS is aware of no corresponding survey for PR firms,
it is clear that many of them also have taken similar steps--creating
agency home pages and establishing interactive media units to provide
new services--principally Web site construction or development of CD-
ROMs.

Existing Departments Do Work

While many PR firms have found the need to create new departments
to provide interactive services, ad agencies for the most part appear
to be using existing departments, the 4As survey suggests. At four
out of five responding agencies, interactive projects are handled by
the creative department while production is generally handled by
either the production or creative department.

Clients Feel Peer Pressure

Confirming perceptions that many organizations are creating sites
because of Internet hype, more than one-third of the agencies
responding to the 4As survey said their clients are creating Web sites
because of "peer pressure." Creating sites as a result of marketing
strategy was cited by 20 percent of agencies as the driver for their
clients.

The 4As has stepped up its own commitment to the interactive
medium by creating a Web site, to which 70 member agencies have
established hot links.

The complete survey results can be viewed at the 4As' Web site,
at http://www.commercepark.com/AAAA/AAAA.html
(4As, 212/682-2500)