This week in Martech: Tech is eating the agency groups. In light of the merger news between IPG and Omnicom, Keanu Taylor investigates how agency hold-co's are investing in Adtech and Martech in a desperate attempt to modernize. Agencies have been the beneficiaries of new technologies and channels since the days of the first television. But tech is increasingly automating most of what agencies sell to brands. So the real question is, will it work? Link in comments. 👇
Spot on Juan Mendoza, I've been saying this for the last five years or so and gotten quite some backlash for saying it. But as I was spending a lot of time within agencies before I went to work with inhouse marketing I saw that the agencies were going to have to make some real changes if they were to stay in business. 5 years later not much has changed. Of course, some agencies have made some good adjustments, but they are rare examples. And we are starting to see the results of agencies not embracing change. #ToldThemSo #TheyShouldHaveActed
This was inevitable. Same goes for BPO (outsourcing) companies in ad tech (ie. Accenture, MediaMint, etc). They’ve built great businesses offering lower cost labor services for customers in the digital advertising market, but as more and more gets automated, they’ll need to change their business models (outcome based instead of paying for hours) or they’ll need to build/buy technology.
You are missing half of the WPP solutions in here. A bit more research needed before posting maybe. WPP Open, CAAS, BAV, The GroupM offering.. Goat, Village and VML for Influencer marketing.. VML Commerce for AMC.. https://www.wpp.com/en/news/2024/05/wpp-recognised-as-leader-in-commerce-services .. I'm not even talking about the 15000 VML Martech Specialists supporting FTSE100 clients daily..
Both sides are converging - this has been going on for about a decade. Many people don't realize that AccentureSong ($19b) is around the same size as WPP ($18b). WPP's Wavemaker does a lot of RMN work but is not necessarily specialized in the space - may be worth adding to your chart,
The real real Q: why doesn’t anything mention “creative” ?? I thought these were ad agencies!!
Inaccurate info for WPP + missing Havas & Dentsu, I must say this infographic is useless
Regarding WPP, this analysis seems to be outdated and factually misleading. I recommend reviewing the latest versions of WPP's investor presentations and reports for more accurate information. The same may apply to others, but in those cases, that goes beyond my current knowledge.
I don't understand why more agencies and holding companies don't merge with and acquire more system integrators. That would be my strategy. I would focus on delivering more value for less money, investing in commodity technologies rather than custom code. Everything else seems like a technique to bill for more hours, and a disservice to the customers. Focus on your differentiators, not your portfolio. Code is a liability, not an asset. Habits are hard to break; people get stuck in infinite loops.
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3dRead the preview here: https://www.themartechweekly.com/technology-is-eating-the-marketing-agency-groups/