Here Come The Consultancies
Over the past year business consulting firms like Accenture, Deloitte, and PwC have started encroaching into marketing services and are beginning to threaten the traditional ad agencies. As a proof point of how successful they’ve been, Accenture Interactive just disclosed it’s +20% YoY revenue growth. Translation . . . clients are buying into their marketing service offerings and agencies should be worried.
Up until now the consultancies’ marketing services have concentrated of media planning and buying, and now they’re starting to get into data management and programmatic. (So pretty much everything agencies do except for creative.) The consultants feel they can bring better strategy and cost efficiencies to a legacy agency environment that’s sometimes motivated more by its own profits than the clients’ best interest. Accenture Interactive Global President Nikki Mendonca summed up their worldview when she said, “There is still a lot of incompetence within the current marketing services industry and it needs to be called out.” Ouch!
I’m guessing Accenture Interactive’s +20% is just the first sign of a growth spurt for the consultancies, which will come at the expense of the agencies. Fasten your seat belts, Madison Avenue!