As I reflect on the acquisition of IPG by Omnicom, it's clear that this trend of consolidation within advertising agencies points to a troubling future for the industry.
The holding companies have become mere 'cash flow plays', resembling laundromats or car washes, while the true innovation in the market is being driven by technology companies.
The arms race that existed in the agency business has disappeared, with companies like Google and Meta choosing to bypass traditional agencies entirely, leading to a lack of relevance.
Clients increasingly prefer to bring marketing capabilities in-house. This shift not only increases their control and decreases costs but also sets a new standard for quality and speed that traditional agencies struggle to meet.
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