Fair warning! This post contains two highly self-serving conclusions. First, the future for flexible, agile marketing services agencies is bright. Second, smart CMOs can efficiently and effectively use portfolios of best-of-breed independent agencies to deliver international campaigns with local market impact.

The recently announced acquisition/mega-merger of the number 2 player in global advertising (Omnicom) with number 5 (IPG) creates immediate opportunities as well as ringing alarm bells. Size is evidently more important to the holding companies than ever before. However, it is less important for some of the clients they serve — such as those who are pulling their marketing in-house or those working directly with the pervasive media and Martech platforms.

Large, well-run companies won’t disappear. Global agencies will always serve massive enterprise accounts worldwide. I saw this at WPP — clients operating in 125 markets don’t want to manage 125 agencies or compete against themselves for ad space. They need help with global brand messaging across languages and cultures. For major brands led by purchasing departments, getting holding companies to pitch against each other yields good value.

The combination of scale (big portfolios of clients with lots of billings) and ad/marketing technology (efficiencies, automation and reach) means fewer agency people are needed. The advertising holding groups are making layoffs, which should be good for their businesses and share prices (or at least be a defensive move to stay competitive).

With consolidation at the top of the agency market (the holding companies) and fragmentation at the base of the market (copious supplies of consultants and freelancers), clients now have a viable “third-way” option to work with portfolios of lean, independent agencies providing specific services and value on demand.

The “Shimano-ization” of agency operations is nearly complete. This concept, shared by Padmini Pandya when she was at Publicis Sapient, refers to how the Japanese manufacturer got so good at producing gear-changing and braking components that most traditional bike makers stopped trying to compete. Instead, they switched their focus to creating great frames and great marketing and used Shimano components.

Similarly, an effective agency can now run campaigns on Google, Meta, LinkedIn, Weixin, Baidu, Naver and dozens of other platforms, without having to build their own specialist media buying teams. Like the bike manufacturers’ change of focus, agencies now hire smart analysts, clever campaign managers, and savvy marketing consultants to deploy digital campaigns.

The gig economy and technology have Shimano-ized creative services as well. While strategic creative directors remain vital, there’s now right-shored freelance talent, experienced journalists, brilliant designers, and AI to help with sophisticated data-driven content creation.

Agencies can focus on specific valuable services while outsourcing or partnering for the rest. Strategy and creativity (the REAL kind, not generative AI slop) remain the engines of consulting and client success. Clients can now choose lean, independent agencies providing specific services on demand.

Current Asia exemplifies this approach, focusing on financial services, B2B, and data-driven content marketing. Clients come to us for targeted thought leadership and lead generation, not full-service marketing.

And with that thinking in mind, that’s one reason we’ve teamed up to help create the…

Asia Marketing Network

We are excited to announce a new agency alliance. In partnership with Eat Creative, GTE, and Stepworks, we have established the Asia Marketing Network.

This is an independent collective that provides tactical, on-the-ground support across every facet of brand, marketing and communications in Japan, Singapore, mainland China and Hong Kong, without the typical large agency overhead.

Check out the AMN website for more details! Learn More Here >