Big agencies are under pressure to cut costs while facing upcoming regulation concerns, which has led holding companies Publicis and Interpublic Group to acquire marketing firms Epsilon and Acxiom.They also expressed concern that those holding companies would have greater pricing power and that advertisers would have access to fewer data companies.Back in 2016, Denstu Aegis Network acquired Merkle's first-party database."It's a move to help the agencies better contend with the technology walled gardens that are somewhat protective of their own data," said Jay Pattisall, principal analyst at Forrester Research.It's been a criticism for a number of years that marketers aren't fully utilizing all the data that's at their disposal."During Omnicom's quarterly earnings call on Wednesday, CEO John Wren said that the company looked at buying Epsilon and Acxiom but decided they wouldn't meet clients' needs and suggested that IPG and Publicis' acquisitions create bias for marketers.
Home workout pioneer Bowflex is muscling in on the smart fitness trend by hiring its first-ever creative agency of record.A name once defined by late-night infomercials and peak ’90s spots featuring miraculously hairless and muscular models is enlisting new creatives to shift its marketing from highlighting product features to redefining its brand.Bowflex, owned by fitness conglomerate Nautilus, chose New York independent shop Fig to lead its marketing efforts after a competitive review first reported by Adweek’s AgencySpy in May.The decision comes as the at-home smart fitness industry sees explosive growth thanks to DTC brands like Peloton, Tonal and Mirror.The marketplace for home fitness is thriving, which is good news for [Bowflex], but there are challenges coming in.Mark Figliulo, founder of creative agency Fig
However, some agencies worry that too much ad-tech consolidation will only strengthen the walled gardens of Facebook, Google, and media companies.They're under pressure to cut costs, meet clients' demands for transparency, and deal with new privacy concerns and regulation like the forthcoming California Consumer Privacy Act that could dramatically change how advertisers collect data and target ads.Executives from four major agency networks told Business Insider they'd pare the number of ad-tech companies that they work with, particularly those that provide third-party data."We've done a lot of testing and learning and we understand where there is duplication and where there isn't within the ad-tech and data provider ecosystem," said Evan Hanlon, chief strategy officer of GroupM US.Bret Leece, global chief data and innovation officer at Havas Group, said the agency tries to work with groups of three ad-tech companies that provide similar offerings to give clients choices while making the agency's work manageable.A fourth agency network, which wouldn't speak for attribution, also said it was working to reign in its ad-tech vendors.
Publicis Groupe’s ongoing restructuring, which was first announced in 2015, is further taking shape in the U.S. via the introduction of three “zones” that break up the holding company’s creative hub into three geographical brackets.Publicis Communications, which encompasses creative networks including Leo Burnett, Saatchi & Saatchi, Publicis Worldwide, BBH, Marcel, Fallon, MSLGroup and Prodigious, will now be organized under West, Center and East divisions.Andrew Swinand, CEO of Leo Burnett North America, will take the helm of Publicis Communications Center, where he will lead Leo Burnett in Chicago and Detroit; Turner Duckworth; Fallon in Minneapolis; Martin Retail Group in Birmingham, Alabama; and Arc in Chicago.Jem Ripley is taking on the role of Publicis Communications East CEO.He joins from consulting firm Capgemini, where he led the digital transformation business for North America.Prior to that, he spent 10 years at Publicis’ SapientRazorfish as president of the East region.
To read the full article, simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.Ad agencies may be getting squeezed on numerous fronts, but the market is ripe for boutique firms helping brands navigate everything from in-housing to brand strategy.Read More: Big brands like Unilever and Marriott are taking more of their advertising in-house than ever before, and a whole new cottage industry of companies is trying to cash in on the opportunityThat, plus a proliferation of new companies that blend technology and culture but lack a defined purpose, prompted former Airbnb chief marketing officer Jonathan Mildenhall to start his own brand consulting firm, TwentyFirstCenturyBrand, or 21CB, as it also calls itself.Mildenhall and his co-founders Alexandra Dimiziani, who was Airbnb's global marketing director, and Neil Barrie, former chief strategy officer at TBWA\Chiat\Day Los Angeles, opened their doors in November 2018.He's best known, though, for overseeing Airbnb's edgy campaigns that took stands on political issues like Trump's travel ban and LGBT rights.
Clearly, brands are taking ownership of media buying in some form or another, although there is no strict definition of in-house capabilities, meaning that each respondent answered based on their experience.But how did brands start out in a world where buying power was king and skills were largely only within traditional advertising agencies?Driven by the ease of setting up a Google account and buying media, companies such as Kelkoo, the main European price comparison site of the era, ran all of their marketing in-house with a heavy focus on search and affiliate programs.How brands treat the emerging programmatic platforms in OOH and TV will be the next battle ground with established agencies.Today the numbers of these companies are only growing with the rise of DTC, and indeed, the scale of these companies is ever-increasing.As TV and OOH platforms develop, these brands will likely move any spends in this space in-house as well.
There has been much justified gesticulating over the decline of ad agencies in the past few years.That drop certainly isn’t due to a lack of ads, which are as pervasive (and invasive) as ever.The big challenge, of course, is ever-increasing automation.Programmatic advertising and digital targeting have taken a cleaver to the heart of ad agencies and drained the creative lifeblood that fueled the industry.In the brave new programmatic world, digital is demanding a focus on “results,” and metrics—however questionable their actual impact—rule the day.Agencies move to game the system and hit numbers, not inspire minds.
Opinions expressed by Entrepreneur contributors are their own.In the second episode of season two of The Rough Cut, Storyhunter co-founder Alex Ragir went to Cannes, France for the Cannes Lions Festival of Creativity, a major event and award show for the advertising industry.In this Cannes Lions special series, we’ll be releasing a new episode every week for the next two months with some of the biggest names in the industry.In our first episode from Cannes, we talk with Ari Halper, Chief Creative Officer at FCB New York, a division of FCB Global, the world’s second oldest advertising agency.Halper led the team that won the Titanium Grand Prix at the festival for a campaign for Burger King called “The Whopper Detour”, where customers could unlock a 1-cent Whopper if they go near its rival’s McDonalds’ restaurant, and then head to the closest Burger King to get the discounted burger.Ragir and Halper discussed the importance of adapting in the fast-changing advertising industry, how diversity of talent can positively impact your company’s productivity and what traditional agencies like FCB will look like in 10 years.
Editor’s note: Adweek worked with Matthew Scott Goldstein, a consultant with a deep knowledge of the media industry, to craft his quarterly newsletter into an Adweek article.The results continue to demonstrate the consistency and diversity of Omnicom’s operations, the ability to deliver consumer-centric strategic business solutions to clients and best-in-industry creative talent.The U.S. was up 2% in the quarter, driven by strong performance in advertising and media, healthcare and precision marketing group, offset by the decline in events business, further consolidated data and analytics and technology services and investments at Annalect.The impact of net acquisitions was positive 9.4%, and the resulting organic net revenue increase (which excludes results from Acxiom) was 6.4%.This was composed of an organic net increase of 5.7% in the U.S. and 7.7% internationally, attributable to a combination of net client wins and net higher spending from existing clients.Results were driven by strong top- and bottom-line performance in media, as well as growth from global creative networks, public relations and digital offerings.
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In what follows, we break down the best marketing agencies in LA by the following four categories:Let’s take a closer look at each of these agencies and see which one might be right for you.We eat rocket fuel for breakfast.”How They’re Different: They place a high emphasis on what’s timeless and classic to deliver global campaigns and identities that have a lasting resonance.They aim to produce results that are seen, heard and measured.Pulsar works with clients who are in “the business of doing good.” Many of their notable clients are public transportation systems and companies.
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Pepsi has chosen TBWA\Chiat\Day New York as lead creative agency for the Mountain Dew brand following a closed, Omnicom-only review.“We enjoyed a long and fruitful relationship with BBDO New York and are grateful for the partnership,” Mountain Dew vice president of marketing Nicole Portwood said in a statement confirming the switch.“We’re excited about our new chapter with TBWA\Chiat\Day New York and look forward to continuing our longstanding partnership with Omnicom.”According to parties with knowledge of the matter, longtime incumbent BBDO pitched for the business, as did Goodby Silverstein & Partners.While PepsiCo works with a range of agencies around the world (VaynerMedia created this summer’s Instagram-heavy Pepsi campaign), the company has a unique six-decade relationship with Omnicom.In 2001, leadership opted to consolidate media and creative with the holding company after IPG acquired former Pepsi agency of record FCB, creating a conflict of interest due to its existing relationship with archrival Coca-Cola.
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Condé Nast has added a consultancy service to CNX, its in-house creative agency, an offering the company touted at the Cannes Lions festival last week.The company is pitching the new service, dubbed CNX Core, to potential clients as a way to offer access to its data, editorial team and research.“They’re coming to CNX for that insight and access, the talent, the ability to think about where culture is going,” said Pam Drucker Mann, chief revenue and marketing officer at Condé Nast.“Everyone wants to talk about insights, but what we bring to the table is foresight.”In working with brands, CNX’s consultancy service will capitalize on providing insight from the editorial team on where trends are heading and the industry’s perspective on those brands.“No other creative agency is going to be able to do that,” said CNX managing director John Deschner.
To read the full article, simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.As the holding company model continues to face threats on numerous fronts, the five biggest ones should consider going private, said S4 Capital's Sir Martin Sorrell.Sorrell also said that ad agencies his new company S4 Capital is trying to provide advertisers with an alternative by focusing on data, digital and being better, faster and cheaper than traditional agencies.A lot of clients believe that small is beautiful on the creative side of the business, and brain is becoming more important on the media side than brawn, certainly in programmatic."Some, like WPP, are responding by simplifying their networks, and integrating creative, digital, and media teams.Read More: Consumers are avoiding ads more than ever, so P is striking creative partnerships with big names like John Legend and Arianna Huffington