Vision Report

Agency Holding Companies Need A Brave New Business Model

The CMO Growth Agenda Forces Agency Holding Companies To Rearchitect Their Raison D’Être

August 14th, 2018
Jay Pattisall, VP, Principal Analyst
Jay Pattisall VP, Principal Analyst
Ted Schadler, VP, Principal Analyst
Ted Schadler VP, Principal Analyst
With contributors:
Keith Johnston , Lexie Lawhon , Rachel Birrell

Summary

The CMO/agency relationship is at risk. Brands are turning to in-house agencies; company growth agendas bring in CIOs and other business stakeholders; ad budgets face constant pressure; and consultancies are swooping in to take high-margin experience technology services. Our conversations with CMOs and agency holding company CEOs show that agencies need a new business model. We’ve identified a path back to partnership that puts the client at the center, elevates new services, and blends creative entrepreneurialism with new executional prowess.

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