Nikes decision to break up its ad agency business between Wieden + Kennedy and another agency set Madison Avenue on edge not only because Nike decided to go with another agency, but also because a reason for Nike's decision was dissatisfaction with Wieden's lack of digital expertise, say those who know of the decision-making process. Wieden will continue to do handle most of Nike's ad account, including basketball, mens training, and women's fitness. However, industry executives say the decisions serve to alert Mad Ave to the following message: No matter how talented an ad agency's creative team or how well the client's management likes the firms executives, the agency is of limited value unless it embraces digital media. Many traditional ad agencies, which nave their roots in TV and print, have not acted with alacrity to grab onto the impact of the Internet. Some have increased their digital talent pools, while others still dont have sufficient digital talent to meet client demand. Some also keep the digital department separate from the rest of the firm. When Wieden hired Renny Gleeson, a digital expert, the shop started to be more serious with digital, but an earlier decision not to ally with AKQA was probably a mistake. Nike now sees digital thinking at the core of ad strategy, and ad executives predict that more mainstream ad firms could see less business if they dont figure out better how to integrate digital media.