Interactive Agencies and Digitalization Readiness

Interactive Agencies and Digitalization Readiness

Leila Behboudi (Department of Business Management, Islamic Azad University, Qazvin, Iran)
Copyright: © 2017 |Pages: 17
DOI: 10.4018/IJIDE.2017100104
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Abstract

This study presents primarily factors affecting interactive agencies in Iran. There is a kind of unwillingness among Iranian ad agencies to execute online ad campaign in compare to the global trend and the advantage of use of online ad makes it imperative to find the key factors affecting interactive agencies behavior. Accordingly, the body of literature was analyzed and eight critical factors including “Management participation,” “Organizational culture,” “Size of the organization,” “The level of organization technology,” “Communication infrastructure,” “Financial infrastructure,” “Technology infrastructure” and “Electronic readiness,” were extracted. The expert questionnaire was designed to validate the gathered factors. By analyzing 294 questionnaires, the type of management was found as key factor in adopting online ad campaign execution.
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Introduction

As the need of people (human being) to make interactions and relations with each other grows, Communication and IT (information technology) developments grow at the same rate in the world. That is why creating and developing IT related industries is becoming popular more than ever, in a way that it includes all layers of individual life, from education and health to even selling goods or services and business and has become a fundamental basis in life. Among them is internet field, an important part of information technology, which would have a great impact on improvement and optimization of performance and increasing sales of a business by its extensive and growing potentials, which is why people are dragged into internet advertisement industry or online advertisement.

Today internet is very critical, because according to Porter the Internet can be a critical factor in enhancing a firm’s market reach and operational efficiency (Porter, 2001). In a way that nowadays, many advertisement agencies tend to become an interactive agency, because the existence of internet in this kind of agencies, makes production order and also advertisement publication “online,” which in addition to its benefits for the customer, would lead to an increase in the number of visitors, and at the same time, makes its accessibility easier, as we know that internet is the only integrating channel of three requirements of buying and selling goods: goods order path, goods payment path, and goods receiving path. (Hanafizadeh and Behboudi, 2012) On the other hand, we all know that organizations use advertisements because they believe advertising is a way that leads to an increase in selling goods by increasing public display of a product or service (Hanafizadeh and Behboudi, 2012).

Regarding Internet advertising, Hanafizadeh and Behboudi (2012) define Internet advertising as “an Internet-based process through which advertisers communicate, interact with, and persuade online users in order to position a brand, which allows a company to promote both consumer awareness and preference in a customized and personalized way, and to decrease the time needed to make a buying decision” (Hanafizadeh and Behboudi, 2012, p. 22). On other hand, The Association of Advertising Agencies of America (AAAA) defines advertising agency as “an independent business organization composed of creative and business people who develop, prepare and place advertising media for sellers seeking to find customers for their goods and services” (quoted in Moeran, 1996, p. 21).

Also, according to (Hanafizadeh and Behboudi, 2012), interactive agency is a kind of advertising agency that the scope of its activity is mostly centralized in web, which provides 4 main services to online advertisers in total: strategic consultation, planning and buying media, designing and creating website, and analyzing business information. (Hanafizadeh and Behboudi, 2012, p. 32). Estimates show that the number of registered web sites reached 200 million in 2011 (itproportal.com, 2011), and the number of internet users throughout the world was about two billion, 800 million of whom are Asian (Internetworldstats.com, 2011). Moreover, the number of Iranian users at the end of the third quarter of 2011 was about 37 million, ranking first in the Middle East and fourth in Asia.

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