The Agency Advantage in a Data-Driven World


With seismic shifts in consumer behaviours and brand expectations, agencies are under intense pressure to find a winning formula for sustainable success. The good news is that leading marketers are partnering with agencies to achieve an edge. Microsoft Advertising teamed up with Advertiser Perceptions to glean insights from hundreds of marketers immersed in the quest for data-driven marketing excellence, focused on improving the customer experience (CX).
What we found is that leading marketers are leveraging agencies 2x as much as those marketers who are building their own capabilities.
This is no small matter considering that the advertising industry is experiencing extreme turbulence. Agencies face new competition and disintermediation from the likes of in-house agencies, traditional consulting firms, boutique agencies and super agencies. Of brands that are members of the Association of National Advertisers, 78 percent reported in 2018 that they have some form of in-house agency. While Liberty Mutual set up its own creative agency, Copper Giants, Accenture Interactive acquired Droga5. These are just a few of the industry shake-ups causing agencies to regroup.
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