The Rise and Fall of Global Marketing Agencies
It seems like only yesterday that global marketing agencies were the cream of the crop. They were flush with cash and clients, and they seemed to have a stranglehold on the marketing industry. But times have changed, and many a global marketing agency are no longer the invincible giants they once were. Let’s take a look at how they fell from grace.
The first sign of trouble for global marketing agencies came in the form of small, nimble start-ups who began offering creative services at a fraction of the cost. These start-ups took advantage of new technologies and processes to deliver high-quality work much faster than the old guard could. As a result, many big brands began defecting to these upstarts, taking their business – and their money – with them.
This defection became a full-blown exodus when the global economic recession hit in 2008. Suddenly, marketers were under immense pressure to show a return on investment for every dollar spent. And global marketing agencies, with their bloated overhead and high hourly rates, were just not cost-effective anymore. Marketers turned to leaner, more efficient alternatives, dealing a death blow to the global marketing agency model.
What does the future hold for global marketing agencies? Only time will tell. But one thing is certain: they will never again dominate the industry like they did in the past. Thanks to smaller, more agile competitors and an unforgiving economic climate, global marketing agencies have been forced to Adapt or die. And many have not been able to make that transition.
It seems like only yesterday that global marketing agencies were the cream of the crop. They were flush with cash and clients, and they seemed to have a stranglehold on the marketing industry. But times have changed, and many a global marketing agency are no longer the invincible giants they once were. Let’s take a look at how they fell from grace. The first sign of trouble for global marketing agencies came in the form of small, nimble start-ups who began offering creative services at a fraction of the cost. These start-ups took advantage of new technologies and processes to deliver high-quality work much faster than the old guard could. As a result, many big brands began defecting to these upstarts, taking their business – and their money – with them. This defection became a full-blown exodus when the global economic recession hit in 2008. Suddenly, marketers were under immense pressure to show a return on investment for every dollar spent. And global marketing agencies, with their bloated overhead and high hourly rates, were just not cost-effective anymore. Marketers turned to leaner, more efficient alternatives, dealing a death blow to the global marketing agency model. What does the future hold for global marketing agencies? Only time will tell. But one thing is certain: they will never again dominate the industry like they did in the past. Thanks to smaller, more agile competitors and an unforgiving economic climate, global marketing agencies have been forced to Adapt or die. And many have not been able to make that transition.