
For most ad agencies, integration is a unicorn. Picture courtesy of Steffe
This is probably going to make me even more unemployable than I already am, but conviction should trump compromise all day everyday so let's go.
Update: In a beautiful example of synchronicity, the great George Parker talked about this very damn subject at the 4As yesterday. Read his speech, because it's the truth.
Right. So I've been reading Bud Caddell's thought provoking post about what the model for the agency of the future is, if there is indeed a future for discrete communication agencies. At the same time, I've had a bit of back and forth tweetage with Robert Phillips about the mighty ad networks; the WPPs, Interpublics and Omnicoms of the world.
Ultimately, I've come to a final, personal conclusion that apart from the well worn arguments of why the Big Dumb Agencies (A term that I think my homeboy George Parker should copyright) of this world are in trouble in the face of a convergent and almost organically evolving model of media consumption, they are simply not structured (nor are they prepared to truly restructure) to deal with a truly through the line model (what is the damn line anyway?).
The people at the top of these networks are either completely oblivious to their own business practices or (more likely) hope to ride the gravy train of client compensation long enough that when it all bottoms out they can escape the rubble with their bonuses and start another agency of the future. Or perhaps they're just not brave enough to make a change.
Allow me to explain.
It was Saatchi&Saatchi who (I believe) are credited with beginning the trend of advertising agencies creating holding companies to acquire specialist companies and amalgamate them into the main body of their company. As a principle of course, this is fine - if the many pros and cons of merging two organizations are weighed and deemed to be favorable. There is a whole industry devoted to mergers and acquisitions. (This is saying nothing about the positively neanderthal assumption that snapping up hotshop x will mean you get better after you subject them to the same creativity-sapping procedures that have razed your own company in the first place. But that's another rant for another time).
Where it starts to get messy is the point where we've reached today. Take a holding company, say one of the big 4 of Omnicom, WPP, Interpublic and Publicis. They're composed of hundreds of organizations, spanning all across the globe and dealing in a number of functions; media, creative, direct, banner shops, market research, branding, healthcare and so on. Yet they have one share price, one report that goes to their shareholders every quarter. It's in the interests of their accountants that all their constituent groups and all their companies under their banner do well. Which is why JWT have RMG Connect for their digital and direct work, TBWA have Tequila and RCKR/Y&R have Saint and so on. They act independently on some accounts, but the goal is always to move work into the partner company. These kind of alliances exist between creative and media shops as well; a global client is appointed and the work gets shared between a number of the holding group's constituents.
There is NOTHING wrong with this of course, if you have the balls to say it. But we get ad agencies claiming they're fully integrated, and everything can be done in house. To be fair this may be true for smaller clients, but when it comes to huge pieces of business it's not just local market forces that are at play. Each of the big 4 has global client relationship people (enforcers basically) that make sure WPP stays sweet with Shell, Nissan with Omnicom and so on.
You'll never have an ad agency come clean and say "We actually don't want to be completely through the line, completely integrated or anything like that, we want to do well as a devolved function and make sure our sister companies do well as well". Or "You know perhaps our digital/interactive/media partner isn't the best at what you want to achieve, let's put it out to pitch". It just doesn't happen.
Because (to borrow a sports cliche) at the end of the day, very few agencies truly care about the client's business. Don't believe me? Look at the work. Look at the work, look at the way the majority of ad agencies are dealing with the revolution that is happening under their noses when it comes to media consumption, production and distribution. If you can stomach it, read the yawn-inducing trade rags and their self absorbed he-said/she said, their ridiculous and laughable advice and ads for mega-conferences claiming to be your communications elixir. Then ask yourself if it's the client's interests that are close to our hearts or if it's actually our back pockets, dividends, making sure quarterly profit covers the interest payments on the crippling loans taken to be able to shout about how big you are, share prices and collective rear ends that we're concerned for more.
The majority of the Big Dumb Agencies are riding the slowing gravy train, they'll continue to do so until the client wisens up, tells the global enforcer to go jump and takes the scariest step that is admitting they have been wrong. I find it shameful that we pull the wool over our clients eyes as long as we can rather than empowering them to make the best decisions for their businesses. And yes, I can cite instances from my very brief career to date. As is eternally the case in life, there are exceptions, but by definition they are scarce..
Make your clients famous and you'll be famous. The best partnerships betwix client and communications agency are not merely business relationships, they're marriages of understanding that what is good for one is good for the other. They're organic and ever-changing. Not the same plans and executions rehashed year after year, territory after territory. They exist, often in isolation in some cases. The goal has to be to make every relationship like that. To make the work truly matter.
The future of the ad agency is doing the right thing for our clients, their customers and their potential customers. Not just doing the easy thing.






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