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Death of the Mega Agency Network?

by CMFG Marketing on April 11, 2018 No comments

Is the departure of Martin Sorrell a turning point in the life of the classic global agency network? WPP’s share price has seen a nervous slide since his departure but that nervousness is possibly more than about losing their high profile (and highly paid!) long-time leader. It’s about serious questions being asked about the long-term viability of the existing global agency network business model in today’s online world.

The Economist earlier this year stated; ‘the world’s advertising giants are struggling to adapt to a landscape suddenly dominated by the duopoly of Google and Facebook. Some of their biggest clients, such as Procter & Gamble (P&G) and Unilever, are also being disrupted.’

Driving this disruption is of course technology which is making it simpler for clients to control and manage their own advertising – and with a detail that was never previously possible. The agency networks problems are compounded by the move away from the classic TV focussed ad campaign to an online world with an ever-changing landscape of channels.

So, with income from media commission being stripped out and the multi-million pound single channel ad campaign which could charge hundreds of thousand in ‘creative’ fees a thing of the past, how are the likes of WPP, Omnicom, Interpublic, Publicis and the rest going to be able to support their anything but lean and nimble business structures?

CMFG MarketingDeath of the Mega Agency Network?

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