There’s been a lot of commentary about the amount of money people are paying to get a slice of Facebook and the valuation that’s placing on the business. Seven year old Facebook was recently valued at $82.9 billion on secondary exchange SharesPost Inc, making it more valuable than a host of businesses that have been around for decades. The reason people want in on Facebook, Twitter and for that matter Zynga is because the world knows that majority of the hundreds of billions of dollars spent on marketing are moving away from traditional media outlets to these new social and gaming platforms. Investors believe that these platforms will grow at alarming rate over the next few years as traditional channels continue to decline and even collapse. These valuations are therefore an indicator of where agencies need to be devoting their attention. If agencies are not focused on how to use these channels to help brands attract customers, investors, staff etc, then they are in a dying business. Facebook is adding millions of users a month and it owns the most important demographics making it a near perfect marketing platform. The same goes for Twitter. So the question every agency should be asking itself right now is: are we experts in these platforms? If the answer is no, then you’d better start investing and fast. The rate of growth of Facebook and others demonstrates how quickly the old agency model is declining. So next time you read that Facebook’s valuation has increased by a few more billion, ask yourself if your business has also moved forward in its social capabilities. The answer will make it all too clear what you have to do.