Technology killed the Ad Agency?

or so says a report from Accenture being touted in an AdWeek article. Thinkmulticultural has a brief but good post on this, worth a look. I agree with Accenture that ad agencies are increasingly under threat from the more nimble, technologically attuned digital media companies. Back at Saatchi, I brought 3D to the agency but in all honesty it was a struggle--the slow moving, traditional wheels of an agency like that don't adapt well to a shift as monumental as 3D--(monumental particularly in the automotive sector). but on the other hand, saatchi did come around and now it's a major part of the organisation...so it is possible for agencies to adapt...but then again that may be a testament to saatchi...not sure others are as quick to change direction. but if they want to survive, understanding digital media and acting upon that understanding is essential.