If the general consensus was that agencies offering integrated solutions was an academic exercise of sorts then I think the thinking itself is too traditional, though, and restricted by the current PR/marketing/SEO models.

“Clients, particularly big ones, still have separate budgets for PR, advertising, SEO, digital. And until this changes, agencies will have to pitch specific services, even if there is a lot of overlap”

If this is going to change (it should and it will), progressive agencies are going to have to take part in driving that change, rather than simply pitching to existing structures. Social media is changing the playing field and moving the lines that define those ‘rules’. The traditional separation of businesses’ communications departments (budgets) no longer make sufficient sense. PR agencies, as well as digital, advertising and integrated agencies, should be challenging these existing inefficient budgeting structures, and in doing that actually helping their clients restructure and organise themselves for a future of increasingly ‘social communications’.