Agency holding companies consolidating agencies

There are now five major established international groups - WPP, Omnicom, Publicis Groupe, Interpublic and Dentsu - each of whom controls a huge number of different agency brands spread all over the globe.Generally, the holding company doesn't involve itself too much in day-to-day marketing, but works with its subsidiary businesses to encourage intra-group synergy and to develop strategy.However, agency execs have some questions about Amazon’s clean room.“Amazon’s clean room is similar to Google’s where you have to put data in.One key development in recent years has been the creation of dedicated "vertical" agencies within the holding companies, set up specifically to manage the marketing requirements of individual multi-national clients, and drawing staff and resources from the group's other multi-client agencies.

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Massive consolidation within the industry led to a huge number of mergers and acquisitions, and the creation at the top end of the market of a small group of major international holding companies, each of whom controls a large number of separate agencies.

After all, the shiny new thing is like catnip to agencies — I think most of us still remember the number of blockchain agencies that cropped up last Spring at Havas, Group M and others. ” said one DTC brand founder to me when the Dentsu announcement came out. Amazon has begun testing a so-called “clean room” for marketers and the e-commerce giant to cross-reference their respective data sets in order to inform advertisers’ campaigns, according to an Ad Exchanger report published Aug. Amazon by no means invented clean rooms, which are designed to be privacy-safe environments to commingle advertisers’ customer data and platforms’ aggregated audience data.

Google and Facebook already offer clean rooms for advertisers, and marketers including Hershey’s and Unilever have been developing their own versions.

Mute Six will become part of i Prospect, Dentsu Aegis’ performance agency.

It makes sense that agencies, never ones to be too early to a trend, are cottoning on.

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