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The Advertising Agency Oligopoly

June 4, 2008

George Parker published this article regarding the fact that Interpublic Group (IPG) has launched a new agency in India christened Pickle.

It’s not that they ‘launched a new agency’ it’s why they did it… and why it’s such a problem in our industry.

“Pickle,” which will function as a full service agency and handle business that conflicts with IPG’s older agency Lowe India. IPG’s other agency in India SSC&B Lintas will be merged with the new outfit. Pickle will now service the former’s existing accounts, besides pitching for new business.

One of his commentators actually put it in the best possible way.

Creating splinter agencies and merging the old to eliminate conflicts of interest is just smoke and mirrors. But as the agency world is basically owned by a handful of companies now, what else can you expect?

That is the root of the problem… so it’s our guess that IPG felt that they can simplistically open another office, call it pickles… and bingo.. all the conflicts are gone… they didn’t even have to bother with that.. they could of just changed phone numbers… That’s what Pepsi fell for when Omnicom had a field day with them.

The sad state of affairs that the Advertising industry is facing is this simple fact, we live in an oligopoly. A half-dozen companies control our entire advertising industry, something to an estimate of 87% of total agency billable hours go though 6 holding companies.

The fact that InterPublic will open up a fake agency, call it pickles and literally just compete with it’s sister firm to give the appearance of being a differing agency is an outrage…

I don’t know what is worse, the fact that Interpublic is doing this.. or that they have idiot clients that will fall for it.

Amazing stuff.

Written by TheFounder · Filed Under Advertising Agency News 


Comments

  • http://themarketer.typepad.com/ Gordon Whitehead

    I totally agree with you, the Advertising industry is dominated by a few, but its up to smaller agencies including the one I work for to develop a new businesses model that will break the knock the Oligopoly.

    Is there a new web 2.0 model of collaboration, collectivism and interaction for the agency world, where a social network of advertising agency around the world can join forces to produce creative?

  • http://themarketer.typepad.com Gordon Whitehead

    I totally agree with you, the Advertising industry is dominated by a few, but its up to smaller agencies including the one I work for to develop a new businesses model that will break the knock the Oligopoly.

    Is there a new web 2.0 model of collaboration, collectivism and interaction for the agency world, where a social network of advertising agency around the world can join forces to produce creative?

  • http://www.tribbleagency.com/ TheFounder

    Well of course the standard is being challenged… on multiple fronts.. This site is owned by a one of those ‘web 2.0′ ad agencies…

    That being stated it’s a long uphill battled… we sometimes are excluded on bidding for an account because the potential client said we are not part of a holding company… though our services are 200 years ahead of what they wound up getting and paid too much for.

  • http://www.tribbleagency.com TheFounder

    Well of course the standard is being challenged… on multiple fronts.. This site is owned by a one of those ‘web 2.0′ ad agencies…

    That being stated it’s a long uphill battled… we sometimes are excluded on bidding for an account because the potential client said we are not part of a holding company… though our services are 200 years ahead of what they wound up getting and paid too much for.

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