Welcome to the latest Agency Wire, where we follow major trends in the communications and marketing industry.
Is Your Agency Ready For The A.I. Future?
Tech giants, and even some brands, have been on an artificial intelligence buying spree since the beginning of 2016. Research from CB Insights showed over 40 acquisitions in the A.I. space in 2016 alone, a 470% surge from 2012 when they began tracking M&A activity. Agency holding companies, on the other hand, have been slower to embrace A.I. In 2016, R3 M&A League research revealed that none of the agency holding companies made any major investment in the A.I. space. However, the potential implications that A.I. has for marketing are huge. In our recently released Q1 R3view, we profile three agencies that are jumping head first into the A.I. future.
72% of Decision Makers Call A.I. A Business Advantage
According to a recent study by PwC, business decision makers revealed that they are very optimistic about the potential business impact of A.I. Matt Lieberman, director at PwC, said, "Incorporating AI into personalized marketing strategies is a huge opportunity—and need—for today’s marketer.” The firm recently surveyed 2,500 business leaders and consumers to find out which areas they think A.I. will make the biggest impact going forward, with virtual personal assistants (31%) and automated data analysis (29%) making the top of the list.
Dentsu, WPP & Ascential Lead 2017 Global M&A League
In our latest global M&A round-up, Dentsu still leads the pack with 4 deals to date worth an estimated $304 million. Fellow agency holding group WPP remained in the second place position with 12 deals already this year. The top three is rounded out by B2B media company, Ascential, which recently acquired media and advertising consultancy, MediaLink. This month's biggest mover was Econocom, a European company specializing in digital transformation, who recently acquired the mobile marketing firm Gigigo Group to the tune of $84 million.
R3 is a global marketing consultancy focused on improving the effectiveness and efficiency of marketers and their agencies. Founded in 2002, we work with eight of the world's top twenty global marketers.
Through our regular "AgencyScope" research, now covering more than 1,000 marketers in China, India and other markets, we are learning about true client preferences for the best local agencies in each market and helping agency holding groups form strategic partnerships with the best local agencies.