Why the pandemonium? $26 Billion Dollars in business at stake for ad agencies. So why not?
Coke, Johnson & Johnson, Unilever, P&G, Mondelez International: These mega brands will ring many a bell. And to many global ad agency networks alarm bells. What with almost US$26 Billion (based on a Morgan Stanley report released last month in June) of ad agency business all set to switch places this very year. Madison Avenue is going mad in the quest for the right strategy: defence or offense? Either way, there is no sitting on the fence!
This battle for clients and billings, has been dubbed “Mediapalooza” or“Reviewageddon” by media and industry insiders. (You can bet the industry is never shy on jargon or coinage). But the time has come now for Madison Avenue advertising czars to truly go beyond word play!
Digital advertising is having a field day and there is speculation that the entire pandemonium begin at its door. With the accelerating shift to Digital Advertising and the real time measurability and analytics that it provides to brands and marketers, more bang for the advertising buck has taken on a completely new dimension.
Clients use the ‘ account under review ‘ strategy to get its incumbent agency or its successor to tighten up and augment value and save on costs. Consolidation and mergers will pick up steam in the coming days as agencies scramble to defend, acquire or lose clients who are demanding far more than they have conventionally done (and getting it). Agencies are getting ready to both hit and take the hit.
The stakes are high and the larger they are, the higher it gets. Its never got any bigger for the likes of WPP, Publicis, Omnicom, Dentsu, Havas and the like. So as they court each other to outdo, outbid, outperform, they have to remain on top of the ball and use kid gloves to retain or win clients who seem to be otherwise developing the cold feet syndrome.
So fasten your seat belts.The next few weeks will see incredible activity as ad agencies prepare, pitch, poach, preach, promise…the 5Ps of a different kind! Till then, peace be upon all of us.