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Posted by Tamara Barber on April 7, 2010
On Tuesday, Passenger announced that it is officially selling into agencies in the digital marketing and market research space. Here are some quick reactions on what this means:
First, this puts it in competition with other vendors (such MarketTools, Vovici, Globalpark) that will also sell into agencies and have a proprietary platform that they can decouple from their services.
Why would Passenger announce this as an explicit strategy? I can tell you from the calls I have with agencies that they see MROCs as a value-add to clients they are working with on social media or research. Also, community services (planning, ongoing management, facilitation, reporting) are the most expensive part of the equation, and it’s likely that many of the agencies that Passenger sells to either already have some services capabilities or will be willing to take more of them on at some point. This move meets a market need and diversifies Passenger's business channels with a potentially higher-margin offering.
Second, this announcement got me thinking about where the market for MROCs is headed, and I’ve got three main ideas:
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