Why Pepsi dumped Ad Agency TBWA
February 2, 2010
Agency Spy has the article, but this tidbit completely makes the entire article.
It’s not just digital strategy and production that TBWA is lacking — but social strategy/execution, too. Proof of this, since the agency would never admit it, is in who they’ve hired to execute those portions of their business. For example, HUGE handled social media/site development and design, according to the Times. Sources tell us Chiat has also partnered with Undercurrent and MIR, too, though not on this project. It’s an all-too-common practice for bigger agencies.
Word on the street is Chiat tried to buy a smaller social media agency, probably in a bid to prevent Pepsi moving business away (WPP’s VML got the business, btw). But the deal went south, as did the relationship with that shop.
That’s a shocker… oh.. wait.. it’s not. They didn’t try to buy a search social marketing agency because they had forsight to head off the incoming problem (to put it lightly) they instead went half cocked trying to scoop up ANYTHING possible in the last 5 minutes to show Pepsi they had digital skills.
These big advertising agencies are completely clueless when it comes to search and social media. Personally I am amazed that they even are in business.
5 years ago I told you that this would happen
From the link directly above:
The problem however are these pesky SEO firms that seem to be growing faster than the ad agencies are, in fact many consider them the ad agencies of the future. This doesn’t matter for now as we can still make these expensive print media ads and still design sites in unspiderable ways for now. We figure we have at least 5 years left to rake in the cash.
Like clockwork it happened over and over again
You advertising agencies are amazing. You think it’s 1985.
You pride yourself in being creative… cutting edge.. but in fact you guys are a bunch of dinosaurs that even when told it’s happening you just ignore it.. until the client leaves you… and another.. and another..
Well since I was right on the last one… I am going to be right on the next prediction.
Within 5 years from today.. one large advertising agency (or holding company) is going to be bought and virtually dismantled by a search social marketing agency and raid whatever clients are still left. This company that will do it most likely won’t even be on your radar screen now… like how Google wasn’t on you radar screen before…
I am also willing to state that most likely it won’t identify itself as an “advertising agency” because honestly it has a sigma of being behind the times.
You holding companies should be buying every single search and social marketing agency with even a modest client list… it’s like do or die time.. and last minute “we’re gonna buy some tiny digital firm to say we know how to FTP into a website” isn’t going to cut it.
Because if you don’t do this now.. and I mean literally yesterday now.. your firm most likely will be bought and dismantled within 5 years… mark my words.
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