Sweeping technological change coupled with globalization has led to the development of a new organizational form termed the ''digital firm.'' Digital firms are highly decentralized, networked organizations that leverage information technology to digitalize business processes and foster creativity. They present managers with the challenges of making rapid decisions in response to closely monitored and dynamic environments while creating conditions that foster innovation and creativity among employees.

''Given the challenges now faced within financial services, it's crucial that companies rethink and adjust the way they acquire new customers and retain current ones,'' said Tim Furey, CEO of MarketBridge. ''Digital marketing can help financial institutions develop stronger relationships with customers. Web 2.0 is about consumers selling to consumers, banks and insurance companies need to be thinking about how they are creating brand advocates within the customer base.''

''These findings show that the foundation is in place for marketers, but they are not shifting budgets fast enough to fully understand the value and impact of these new tools and platforms,'' said Scott Gillum, MarketBridge SVP and financial services practice leader. ''The next step is moving beyond one-off digital campaigns, increasing experimentation with other digital tools such as social networks, viral video, and blogs, and moving toward relationship-marketing activities that build and maintain long customer relationships-and this requires investment.''

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