Agencies And Tech Providers Sitting In A Tree; Closing Time For The Open Web? | AdExchanger
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Agencies And Tech Providers Sitting In A Tree; Closing Time For The Open Web? | AdExchanger
"When marketers select an agency to work with, there's a chance they're also selecting a tech provider - they just might not realize it. Brands want objective guidance from agency partners as they evaluate AI tools."
"According to Simon Francis, founder and co‑CEO of marketing consultancy Flock Associates, tech companies provide agencies with dozens of employees at no cost, while the agency then charges brand clients for that same labor. 'It's effectively a rebate,' Francis said, 'or an arbitrage.'"
"WPP CFO Joanne Wilson stated that holding companies are dialing back on the open internet as a primary buying channel. Industry data shows that the open web is no longer where most ad dollars are going."
When marketers choose an agency, they may also be selecting a tech provider without realizing it. For example, Publicis won the Microsoft account and subsequently chose Microsoft Azure as its cloud provider. Brands seek objective guidance from agencies to avoid inheriting unwanted tech stacks. Some agencies receive free labor from tech companies, which they then charge clients for. Additionally, ad spending is shifting from the open web to platforms like Meta and Amazon, where data and measurement are more controlled.
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