Advertising industry expert Carla Serrano, Current CSO of Publicis Global, offers insights into the impact of convergence in 2022.
Brands Embrace Strategic Partnerships in 2021
In the ever-evolving world of advertising, 2021 saw a notable shift in the way big brands approached their agency partnerships. A trend emerged, with brands moving away from specialty shops and local partners towards the scale and efficiency of a single holding company partner.
This shift was evident in the decisions made by some of the world's most recognisable brands. McDonald's, for instance, expanded its relationship with Publicis, a leading advertising holding company, and named Starcom as its U.S. media agency of record. Starcom is now part of McDonald's existing partnerships with Epsilon and Sapient, both of which are also under Publicis.
This move by McDonald's is a reflection of the trend towards strategic partnerships that demonstrate a deep understanding of client needs, a consumer-centric approach, and a data-driven strategy. Agencies that can effectively combine strategic branding, digital transformation, and a strong grasp of client industry nuances have become favoured partners.
The preference for strategic partnerships was not limited to McDonald's. Other big brands, such as Coca-Cola, Home Depot, Philips, and Mercedes Benz, also underwent consolidations of their advertising accounts. WPP and Omnicom, two of the industry's leading agencies, secured multiple accounts through these consolidations.
The reviews that led to these consolidations revealed that brands were looking beyond just creative execution. They sought agencies capable of deep insights, collaboration, and alignment with brand values. Agencies that listened attentively to client needs and market nuances, and employed data-driven and consumer-centric strategies, received strong positive feedback.
These insights from agency reviews and client feedback suggest that in 2021, big brands preferred agencies with deep strategic capabilities and responsiveness rather than purely creative or transactional relationships. This shift towards strategic partnerships is likely to continue shaping the advertising landscape in the coming years.
Sources:
[1] Adweek, "The Biggest Account Changes of 2021", Link
[2] The Drum, "Why brands are moving towards strategic agency partners in 2021", Link
[3] Campaign US, "McDonald's names Starcom as its U.S. media agency of record", Link
[4] Campaign US, "The state of the advertising industry in 2021", Link
In 2021, the preference for strategic partnerships among big brands extended to the realm of finance, with advertising holding companies like Publicis, WPP, and Omnicom, effectively combining strategic branding, digital transformation, and industry expertise, becoming the preferred choice for brands such as McDonald's, Coca-Cola, Home Depot, Philips, and Mercedes Benz. These partnerships, guided by deep insights, collaboration, alignment with brand values, and data-driven strategies, are reshaping the business landscape in the advertising industry.
