Marketing Dive – After years of struggling with returning to growth and the encroachment of management consultancies on their business, agencies appear to have found new momentum as the world navigates a bumpy reopening that faces a critical test with the spread of the COVID-19 delta variant.
“The speed of recovery for holding companies has exceeded expectations,” said Greg Paull, co-founder and principal at consultancy R3, over email…”In difficult times, agencies have faced their fears, shed their liabilities and witnessed the sustainability and growth of digital media,” said Paull. “That awareness, plus available capital, low-interest rates and loose economic policies will drive acquisitions in that space.”
…”Agencies are ready to move on. They’ve done the hard work and removed and recalibrated anything that might mute future growth,” said Paull. “The only changes we might see in H2 would be the creation of new entities or the reshuffling of teams as a response to client needs in the new environment.”