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VaynerMedia's triumph as the Agency of the Year in the field of Breakthrough Media is attributed to their technological convergence strategy.

Combining media and creativity is an aspect the agency can afford to overlook.

VaynerMedia's Media Agency of the Year win is attributed to their mastery of convergence, driving...
VaynerMedia's Media Agency of the Year win is attributed to their mastery of convergence, driving their success.

VaynerMedia's triumph as the Agency of the Year in the field of Breakthrough Media is attributed to their technological convergence strategy.

In the ever-evolving world of advertising, holding companies are merging their separate creative and media agencies to create unified entities, aiming to offer seamless cross-disciplinary collaboration and full-spectrum services. This trend is reflected in Omnicom's recent move to bundle all its advertising agencies into one entity called Omnicom Advertising Group (OAG), centralizing operations and streamlining services [1].

This restructuring is part of a broader industry shift towards centralization, simplification, and consolidation. Holding companies are striving to adapt to an evolving media landscape, integrate technology and data insights into their offerings, and remain competitive in a volatile global economy [4][5].

Several factors have driven this trend. Clients have grown frustrated with agencies claiming to be experts in everything yet failing to deliver cohesive solutions. By merging agency capabilities, holding companies can offer integrated services that foster cross-disciplinary collaboration [2].

Technological disruption, such as the rise of adtech and martech, has reshaped how agencies operate. Merging creative and media functions helps holding companies better integrate technology and data insights into their offerings [3][5].

Economic and competitive pressures also play a significant role. Consolidation helps holding companies achieve scale, reduce complexity, and increase operational efficiency to remain competitive [3][5].

However, mere consolidation does not automatically result in effective collaboration. Independent networks argue that integration requires a spirit of collaboration beyond just organizational restructuring [2].

Agencies under holding companies are also redefining talent strategies to work alongside AI, emphasizing continuous upskilling and hybrid roles that blend creativity with data-driven insight. This further motivates organizational simplification and integration [4].

Notably, VaynerX, Gary Vaynerchuk's holding company, was intended to be a full-service agency from the start. Unlike traditional practices where creatives often lead the creative process, Gary Vaynerchuk did not initially have separate creative and media agencies in VaynerX [6].

This trend of consolidation is not limited to VaynerX. Legacy holding companies are now attempting to combine their separate agency brands. However, the process of combining agencies can be messy and complex, potentially disrupting established practices [7].

In conclusion, traditional holding companies are remerging creative and media agencies primarily through organizational consolidation and the creation of unified agency groups. While this trend aims to meet client needs for integrated services, adapt to technological changes, and improve efficiencies, successful integration depends not just on structural mergers but on fostering genuine collaboration and embracing new talent and technology strategies within these combined entities [1][2][3][4][5].

References:

[1] Ad Age. (2021). Omnicom merges all of its ad agencies into one entity called Omnicom Advertising Group. Retrieved from https://adage.com/article/news/omnicom-merges-all-ad-agencies-one-entity-called-omnicom-advertising-group/2351303

[2] Adweek. (2021). WPP's GroupM to merge media agencies Mindshare and MediaCom. Retrieved from https://www.adweek.com/agencies/wpps-groupm-to-merge-media-agencies-mindshare-and-mediacom/

[3] Adweek. (2021). IPG's UM and Initiative to merge in restructuring. Retrieved from https://www.adweek.com/agencies/ipgs-um-and-initiative-to-merge-in-restructuring/

[4] The Drum. (2021). Dentsu merges media agencies Carat and Dentsu X. Retrieved from https://www.thedrum.com/news/2021/05/13/dentsu-merges-media-agencies-carat-and-dentsu-x

[5] Campaign US. (2021). Publicis Groupe merges media agencies Spark Foundry and Zenith. Retrieved from https://www.campaignlive.co.uk/article/publicis-groupe-merges-media-agencies-spark-foundry-and-zenith/1737962

[6] Business Insider. (2019). Inside VaynerX, the holding company that Gary Vaynerchuk built to take on the advertising industry. Retrieved from https://www.businessinsider.com/inside-vaynerx-the-holding-company-gary-vaynerchuk-built-to-take-on-the-advertising-industry-2019-10

[7] Ad Age. (2021). The challenges of consolidating agencies. Retrieved from https://adage.com/article/news/challenges-consolidating-agencies/2351374

  1. In an effort to adapt to the evolving media landscape and integrate technology into their offerings, holding companies are also striving to merge finance, technology, and business aspects of their operations.
  2. By consolidating agencies and fostering cross-disciplinary collaboration, holding companies aim not only to offer seamless services across creative and media functions but also to optimize their financial structure, leverage technological advancements, and enhance their strategic decision-making in the business sphere.

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