The agency landscape is more competitive than ever.

The typical ad unit is no longer telling a 30-second story for a TV ad. Today, it is all kinds of things that require tech-savvy and know-how.

Large, traditional, full-service powerhouse agencies are struggling to cover all the various ways ads can be served. They are facing competition from smaller, tech-focused players offering pre-packaged approaches at a fraction of the cost.

That’s why, after Omnicom and Publicis called off their merger, Publicis acquired technology services and web development firm Sapient Corp. for $3.7 million.

For brands, choosing an agency has gotten more complicated.  Brand agencies (50 to 500 people) can provide creative direction and strategy guidance but may come short in technological capabilities.

However, for brands that do not need traditional advertising (billboards, television), specialty agencies may be best suited to their needs.

These agencies are nimble and focused, and fill in the gaps missed by traditional agencies – i.e. SEO/SEM, social media strategy and management, digital analytics.

They can also offer platform-specific technology services such as CMS or e-commerce packages.

So, paradoxically, the ad industry is consolidating and becoming fragmented at the same time.

 

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