DDB probably wishes the launch of its social media arm had been received a little differently. On Aug. 2 it announced the formation of Radar, "the first marketing communications agency in Canada to offer clients a unique social media catalyst." Given how eager brands are to get into the social media sphere, it made sense for the big-time ad agency to throw its hat in the ring. But Radar got a cool reception from a very elite group of agency socialites.

"Can you launch a social media boutique without letting bloggers know?," asked David Jones, senior vice-president at Fleishman-Hillard Canada and author of the blog PR Works, about the launch over at his fellow Omnicom shop. Everyone in the society of PR bloggers weighed in on Radar's chances. Most were not hopeful for what was called "yet another big guy wanting to put their toe in the Web 2.0/social media water but not dive in."

A cynic might dismiss such talk as competitive naysaying. After all, many of Radar's critics work at rival agencies. But because the conversation took place in the exact spot where Radar hopes to operate-the blogosphere-DDB had best pay attention. They may technically be the competition, but the authors of PR Works and other blogs like BuzzCanuck, RadicalTrust and their global circle of friends are also viewed as the experts on social media marketing.

Radar's lukewarm reception highlights the challenges agencies face in gaining credibility in the online space these days. No shop can yet lay claim to being the social media master, but some firms are clearly pulling ahead of the rest. They are the ones who have cultivated an expertise in using the tools of social media-like blogs and widgets-and integrated them into their offering.

For anyone who still uses an abacus to do their taxes, social media- refers to a broad spectrum of online communities ranging from blogs and podcasts to sites like MySpace and Facebook. There is an expectation of transparency and honesty in this space-traits the public rarely associates with marketing communications.

The marketer's goal within social media, meanwhile, is to seamlessly blend with the communities. Essentially, they want to market their products and services without appearing to be doing any marketing, and they're turning to their ad agencies to pull it off.

Some brands have had success. TD Canada Trust, for example, recently launched an application called "Split It" on Facebook. It's an online calculator that lets roommates divide household expenses. But for every well-conceived execution, there are many failures-some rather public and messy. When it was revealed that Sony was behind the seemingly user-generated "All I Want For Xmas Is A PSP" blog, it was publicly trashed for misleading consumers with advertising dressed as user content. It even spawned a new word-flog (a fake blog).

Avoiding such embarrassment is one reason public relations firms have typically handled social media on behalf of clients. Not only do they have expertise monitoring public opinion, but their business is more in line with Web 2.0 thinking-collaborating with a community through ongoing interaction.

"It's the antithesis of the traditional advertising ROI thinking, and it's one of the reasons why ad companies have not been as good or as nimble [in social media]," says Joe Thornley, CEO of PR firm Thornley Fallis in Ottawa. "Ad companies think about this stuff in terms of campaigns... PR companies think about it as long-term enhancement of a relationship."

Thornley Fallis has been a leader in social media, developing blogs and podcasts for clients such as LG and Visa Canada. The transition from traditional PR agency to social media expert (though the agency still does traditional work) was made in increments through experimentation and participation.

Thornley, a self-confessed techno-geek, has been keen on social media since 2004 when he used open source Wiki technology to create his firm's Intranet. Through his fascination with blogs and Really Simple Syndication (RSS) technology, some of his employees got hooked too.

At the same time, Thornley and agency president Terry Fallis began searching out blogs and podcasts that could help them understand the arena. After a few weeks of passive study, they began giving feedback on the material they found. A year later they started creating their own blogs and podcasts.

Thornley Fallis now produces seven PR industry blogs, and Fallis co-hosts a podcast called Inside PR with Fleishman-Hillard's Jones. That's huge output for a shop with just 25 employees, but Fallis says involvement in the space is essential. Given the accessibility of the technology, there's no excuse for not taking part, he believes.

Thornley calls those who advise without this experience the "black hat" side of social media. "They're the people who do the corporate video that they hope will go viral, but don't tell anybody it's a corporate video." Equally bad, he says, are those who see sites like Facebook as a strip mine for demographic information instead of an open, social environment. Because users have so far been willing to offer their personal information freely in these venues, brands must act responsibly to preserve that trust. "If the bad apples aren't controlled, they'll mess it up for everybody else," Thornley says.

Exerting that control may prove difficult, as the growing demand for social media advertising will likely spawn a raft of new startups and social media divisions within big agencies. In the U.S., the value of advertising on social media sites is expected to rise to $2.5 billion by 2011, up from $900 million this year, says eMarketer. Most of those dollars are being shifted from advertising on portal sites.

On the positive side, social media marketing veterans are willing to help their new competitors learn the ropes. For instance, while Thornley Fallis and Fleishman-Hillard may compete for public relations work, that doesn't stop Fallis and Jones from collaborating on the podcast. And in the PR blogosphere, authors from one agency freely give advice, compliments and critiques to other shops.

Aside from the conversations that take place online, these early adopters of social media marketing are bringing their online conversations into the real world. Kate Trgovac is the Vancouver-based head of Reinvent, a small social media boutique agency. She regularly attends Third Thursday, an informal gathering initiated by Thornley in Toronto and Vancouver. Trgovac is one of the most prolific marketing bloggers in Canada, but sits down next to students at events like Third Thursday in the hopes of helping the industry find its feet online. Like Thornley, Trgovac believes agencies that want to work in social media need to have staff who participate in it. "It is a different ethos and a different way of working and thinking and understanding media."

It's this hands-on understanding that many feel Radar lacks. The business appeared out of nowhere, staffed by names unfamiliar to the social media agency community. Will it have the right stuff to be successful without poisoning the waters for everyone else-like one of Thornley's "black hats"?

Yvonne van Dinther oversees Radar DDB's staff of four full-timers and its group of freelancers. She understands the typical agency model has no place in social media, but sees room for big agencies to participate. "I don't think it's an ad role or a PR role," she says. "Those skill sets are definitely brought to bear, but I wouldn't want to classify it as either of those things... It's 'how do you target and talk to your consumer in that space?' It's a multi-disciplinary environment."

She says each of Radar's employees has individual experience with social media, but nothing has been produced by Radar as a group. At its launch, the Radar website was a single page with contact information. There was no blog, no discussion forum, and no conversation. Van Dinther concedes that the task of opening the business has taken time away from the company's participation in the online community. "We're starting up," she says. "Going forward we have to have a point of view within the space and I don't think we're there yet."

But to her credit, van Dinther has taken part in the critical discussions about her business. When PR Works spawned its debate about Radar's debut, she jumped right into the comments section to address concerns. "Glad to have you here, Yvonne," wrote Jones in response. "Being part of the discussion, sharing and learning is really what it's all about."