A recent
article by Fast Company reported that major advertising conglomerate Publicis
Groupe announced $170 million in attrition in traditional advertising in 2018.
This is mostly to do with current consumer goods clients moving significant
portions of their advertising dollars to digital advertising.
Luckily for
Publicis, they were well positioned for this transition, with their digital
transformation division, Publicis Sapient. This group reported a 28% increase
in revenue in 2018, impressive having been one of the original leaders in
digital since 1998. They mention a couple important notes about how the
industry and competition is changing. The first is that every interaction we
now have with a brand is considered marketing. This ranges from traditional
consumption of print or TV advertising, to a customer’s experience in a store,
to the seamless process of ordering or returning goods from online or a mobile
app. Agencies can no longer provide just one portion of what a company needs to
guide a user through their brand journey. Second, because of the necessity to
deliver the full experience, agencies have been in a rush to incorporate
digital as part of their suite of deliverables for clients. This has led to
companies traditionally outside the realm of digital advertising to jump in for
massive market share (Accenture Interactive, PWC Digital Services, Deloitte
Digital). Accenture Interactive leads the revenue game at over $6.5 billion in
2018 and Publicis Sapient is ranked number 12 in the annual revenue list.
All of this is
to say it is not a simple as saying advertising agencies are going digital –
this is a market to be disrupted (and really has been disrupted already) by
players who have diversified business lines like Accenture. Time to get in the
game.
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