End of agencies?
Out of context: Reply #26
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- Continuity3
I don't think that ad agencies will disappear. Media channels will change or evolve, some new ones will eventually be introduced, but I think think the agencies themselves will remain. Simply because they're required; if someone's got something they want to sell, they'll need help doing it.
Holding companies, however — the WPPs, Interpublics, Publicis, and Omnicoms of the world — I'm not so sure about.
In 2012, one of the world's biggest airlines — Lufthansa — took their worldwide creative business away from McCann (which is an Interpublic agency) after almost 20 years, and took the business to a Hamburg-based independent agency with a single office, and *maybe* 350 people working for it (the agency is Kolle Rebbe).
KR's work on the account over the last 6 years has consistently been head-and-shoulders above what McCann ever did with the brand. As I understand it, Lufthansa are still very happy with their relationship with KR six years on.
What I'm saying is: I think there's a very bright future for smaller independent agencies that haven't got an eye on being a worldwide holding network. It's those holding companies that are at risk, and we're starting to see it play out with WPP.
- But small agencies run issues not being full service. I see it over and over.Hayoth
- I think that it isn't a lack of capability, as such, but rather a case of them picking and choosing what they want to do.Continuity
- Kolle Rebbe, in my example, actually are full service, but they only have the one location. So for them it isn't a lack of service offer ...Continuity
- ... but a lack of physical reach with offices in other locations.Continuity