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Phasing Out Consolidation, Making Room for Creativity

Though the ad industry trend of consolidation continues, some marketers are shifting from using a single lead-agency to a more creative approach, using multiple shops, reports Adweek. Companies utilizing the decentralized approach include Coca-Cola, Macy’s, Motorola, Walt Disney Parks & Resorts, and Sony Electronics.

More than $500 million in ad spending exchanged hands when Disney, Macy’s, Motorola and Sony made shifts in January 2005. These companies appear to prefer choice and interagency competition to the relative simplicity of using one agency.

The shifts come after years of continuous creative consolidation. In 2005, a dozen clients consolidated an estimated $5 billion in billings on the media side. Between 2001 and 2004, some 25 clients consolidated, involving over $3 billion.

Creativity is the main focus of those companies moving away from consolidation, said Arthur Anderson of Morgan Anderson Consulting, New York. Chief marketing officers need to think globally to manage marketing operations. According to Anderson, “More and more, the mantra is, ‘Follow the creative. Look around for it and find it.’ The con is, can you do this with multiple resources and keep the brand positioning constant and current?”

Last week, Mediapost pointed out that some big advertisers - P&G among them - seem to be following a trend of consolidating media planning and buying duties with their creative agencies.