EUAN Jarvie, chief executive of Scotland's biggest media buying agency MediaCom, has warned Scottish business that it has to "revolutionise" the way in which it sells and markets its products, and it must realise quickly that new media will be the dominant method.

"Five years ago, new media was all about the internet and digital, now it is the media and it dominates," he said. "Companies need to know who their clients are, what motivates them and how to catch their attention.

"If you put people first, you will get better results. The power of the individual is so much stronger and children and teenagers now expect much more control.

"They want to be able to choose when, where and on what device they watch and read about the things that interest them. Their attention will be much harder to win."

MediaCom is responsible for planning and buying advertising for its clients. It works with the largest private and public organisations in Scotland.

In existence for ten years, Jarvie said his team has won in excess of £20 million of new business in the past 20 months with a pitch success rate of more than 60 per cent. Clients include Royal Bank of Scotland, Standard Life, VisitScotland, the Scottish Executive and Trader Media Group, publishers of AutoTrader magazine.

The latest Internet Advertising Bureau figures have found that UK advertisers spent more than £2 billion online last year, overtaking spending in national newspapers, radio and outdoor poster sites.

TV advertising revenues dropped 4.7 per cent last year, radio by 5.2 per cent and press classified by 7.8 per cent. However online revenues rose 41 per cent. "Advertising is now fragmented," said Jarvie. "Less than 35 per cent of Scots just have terrestrial television. Most have paid-for satellite and cable.

"To reach all the people in Scotland used to be simple: you would advertise on STV; but now you can't be assured your message will get out.

"There is a fierce competition and a multitude of channels so clients need to look at a variety of platforms and innovations, but the key is understanding their customers."