As the advertising and media sector adjusts to a landscape without Sir Martin Sorrell as the face of WPP, speculation turns to both the future of the world’s biggest media agency and the repercussions of the ad mogul’s resignation on the wider industry. Pivotal to these discussions is whether the constituent agencies themselves are also outdated.
But even before the announcement of Sorrell’s departure, the fluctuating fortunes of these organisations have been well documented.
It’s clear that the model that has served the ad agency well for many years may no longer be tenable. Revenues are flat or declining, margins are shrinking and consultancies have their foot firmly in the advertising door. Meanwhile, brands are bypassing agencies to take their advertising in-house, while calling them out on hidden fees and demanding transparency throughout the digital advertising supply chain.
The technology platforms, once hailed as oil for the wheels of digital advertising, now wield the power in the bloated ad tech landscape.
While some demand side platforms (DSPs) do help agencies to use their in-depth knowledge to create new value and provide bespoke solutions for each client, many offer little in the way of flexibility and therefore cannot be customised for the needs of each advertiser, or individual campaign, or specific business goal.
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