Welcome to the latest Agency Wire, where we follow major trends in the communications and marketing industry.
Mediapalooza Continues in 2018, Pressure is on for Agencies
Some agencies are calling 2018 Mediapalooza part two, as brands are reviewing an increasing amount of accounts, following a pattern that began in 2015. However, this year brands are putting new some requirements on agencies, and delving into topics like data, analytics and transformation. Since the beginning of this year, global brands including Shell, Microsoft, and Mondolez have put have put their accounts in review. “These reviews are going deep into the tech stack,” said Greg Paull, co-founder and principal at research firm R3, which runs agency reviews. “There’s a huge challenge now for marketers to integrate first-party data with second- and third-party data.”
For the full article from Adexchanger, click here.
Agency M&A Up 126% Globally with US Leading the Way
So far in 2018, marketing and advertising M&A is up 126% with, non-traditional US buyers leading the way. There have been 100 agency related deals worth $4.6b in total sales value through to the end of March (compared to 94 deals at $2.0b in 2017). US-based deals showed biggest increase over Q1 of last year (+366%), with 58 deals valued at $3.1b. The trend of unconventional buyers like consultancies and PE continued – with just 14% of all deals done by agency holding companies thus far.
P&G's New Agency Model Brings Competitors Together
Marc Pritchard, CMO of P&G, is planning to shape agency model into a new collaborative model that he believes will provide more value for money. At the recent 4A's Accelerate Conference on Mondayin Miami, Pritchard announced that he is going to pilot three new agency models. The most exciting is a new creative shop that brings together talent from rival holding groups which will oversee creative for P&G Fabric North America. Under this new "People First" model, talent will be drawn from multiple competing agencies – most of whom have already been working with P&G.
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.