Competition and the Agency Holding Company.

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The other day I read AT&T was moving all of its advertising business to Omnicom. No doubt the reason undergirding the move was economies of scale. One of the public explanations for Omnicom winning the business was “integration” of programs and ideas. That is to say the new media agency “nuts and honey” or some such and super shop BBDO will work together closely, in an aligned fashion, to insure the ideas they presented as a team in the pitch are structurally recreated IRL (in real life).

This age old strategy sounds great on paper. And as we get more mature as an industry the strategy will actually work. But there are two conflicting forces against a move like this. Ferocious competition and complacence. When one entity is in charge, time and comfort engender complacence. BBDO will churn out nice work, great work even…Hearts and Science (the media company) will plan and digitize its ass off…to a point. The paranoia, however, that keeps shops on their toes dissipates.

The energy that has shops like Anomaly, Droga and Preacher slamming, is lost.  Not a fan of the big consolidation move. Competition is what marketers thrive on. So must its shops.

Peace.