MM: That parallels the evolving role of a media-planning agency—specifically, a group that understands the syndicated research, compiled data, and other types of primary research, slicing and dicing the data to achieve an optimum media mix—that includes SEO, SEM, and other forms of engagement services. Does it follow that the SEO-SEM trend will continue moving towards even more specialized agencies?

BK: I do think the trend is for companies to hand-off or out-source SEM to agencies with a specialization in Internet marketing. There’s a lot of money in play. Companies spending these dollars need to have a high degree of trust they’re getting proper positioning for the dollars invested and that this positioning is driving the desired visitors to their site.

I believe agencies must build or license technology to improve their ability to manage these processes. I also believe agencies or some form of service provider needs to “mentor” on-line marketing best practices to their clients for a couple of reasons.

If on-line marketing is viewed as a black art then it will be difficult to view it as a strategic initiative of the company. If the agency holds all the skill or knowledge about these practices then in-house champions can’t articulate value nor influence KPI’s that are span on-line and off-line initiatives.

Google and others are actively taking on this consulting role in competition with agencies and in support of company in-house plans so again the agencies need to transform from exclusive outsourcing to more of a mentoring partnership.

MM: Yes. This goes to a conversation I’ve been having with other innovation leaders now for several years. In one sense, Google really owns that whole keyword/adword space. And the organic search that makes it relevant.

The second thing it has as an ad network. Both adwords, as well as banner ads and rich media things, in terms of animation and things like that.

The challenge that Google has in terms of growing its business is that online only represents one portion. Granted, a significant and rapidly-growing portion, but a portion nonetheless of the total spend.

So there’s a still tremendous—many hundreds of billions of dollars—spent in print, broadcast, out-of-home as well as direct mail and catalogue and so on. They’ve made moves to say, “Let us create a marketplace kind of network for that.” Be they spot display ads in print magazines with a barcode reader in it, so that consumers can scan the barcode with their mobile phones and get a coupon or whatever.

This comes back to what Google just recently announced. I don’t know if it’s a formal announcement or a beta announcement, but essentially a dashboard by which to integrate the Google analytics or Google scene in terms of “What’s going on,” in my website, as well as in the marketplace as it relates to concepts and products listed on my website. With the ability then to buy things.

Now we’re talking about a market planning desktop.

Can you validate pushback? Refine that narrative? And then perhaps explain how you see it working in the realities of the clients with whom you work?

BK: I can’t really comment on those statements since this is outside my area of knowledge. In my opinion this plan makes a big assumption that the creative capabilities and the experience of an agency are of less value than the automation of those processes and the buying power of a market maker like Google.

MM: I think that heightens a narrower, deeper, slice of creativity. That would highlight the price premium that someone who really understands a very specific part of an overall engagement theatre.

I’m really talking more about disintermediating the traditional media planner who—for the most part—was the only one able to translate the analytic insights into concrete action items.

BK: Agreed.

MM: Can you summarize some of the vendors that are leading the way in terms of SEM? You mentioned Covario. Any others in that space?

BK: Covario’s the only software solution I know of that provides an automation and auditing solution for SEM versus the placement solutions offered by companies like Omniture and WebTrends.