When Cliff Freeman & Partners went under recently it shed a lot of light on traditional ad shops, verses digital agencies. Some of the brightest ideas of the last twenty years came from Cliff Freeman's shop, but strong creative is not enough. Today, in order for an agency to survive, strong creative needs to be filtered through a plethora of digital channels. Media planning has always been important, but today it's essential that every agency, whether considered a digital shop or not, have a strong relationship with digital planners, so the message reaches an incredibly splintered market.
Adweek has a great article by Brian Morrisey talking about the competition between traditional and digital. Digital vs traditional