Welcome to the latest Agency Wire, where we follow major trends in the communications and marketing industry.
Agency Models a Major Focus For Global CMOs
As global marketing teams are wrestling with Digital Transformation, one major focus for CMOs is managing their roster of external partners. No longer just consisting of traditional agencies, these rosters now incorporate technology vendors, consultancies and even publishers - and the task of seamlessly integrating each stakeholder with their internal marketing teams is an ever-growing challenge. In our recent book, Global CMO, the Marketing Chiefs of 18 leading brands talk about how they're approaching agency partnerships in the age of digital transformation. Theresa Agnew, CMO of GSK Consumer Healthcare said, “the way we work with our agencies has completely changed," and many other CMOs echoed her sentiment.
The latest Global M&A League Table from R3 shows that two big consultancies, Accenture and Capgemini, are leading the way with the biggest M&A deals – German creative tech company Mackevision for Accenture and US digital customer engagement agency LiquidHub for Capgemini – while the ad holding companies lag. Dentsu is still the busiest agency acquirer with Omnicom doing two medium-sized deals. WPP, long the most active M&A buyer, did five deals up to and including May but they’re small bolt-on acquisitions.
Since Sir Martin Sorrell's departure from WPP, there has been much speculation on who will replace him, and what he will do in the future. In a recent interview with The Drum, Sorrell revealed that WPP’s succession plan has actually been in place for close to a decade. “For the last 10 years there has been a succession program. The plan was for Mark Read and Andrew Scott to be joint chief executives. If it’s an internal decision…my view strongly would be those two individuals have complementary skills."
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.