Redefine Marketing’s Success Factor - Holding Company vs Collective Model
When you are selecting an advertising agency to work with, what are the top factors that are important to your company? Will you only work with established ones?
What about an agency that is known to deliver compelling programs? Or are you like most Fortune 500 brands that only consider the breadth of an agency and ability to switch teams in order to mitigate risk?
In today’s landscape, many brands are now putting a focus on how the agency operates. What was once an easy answer for large brands—only work with large holding companies—they are starting to see the benefits of the smaller, agency collective model.
Let us explore the differences between the two.
The Holding Company vs. Agency Collective Model
The advertising agency world shifted a few years back to accommodate shrinking marketing budgets and expanding needs to form what is known as today as a holding company. Recently, a new player has been added to the game to streamline the process and compete for business: the collective model.
Operating under a central management system, a holding company gathers independent, competitive service companies that can represent competing marketers. This is something a single, independent agency could not do.
On the other hand, an agency collective model allows for many agencies and industry experts with diverse specialties to operate under one joint group with an integrated approach.
Why it Matters
The two business models have entirely different approaches when it comes to how marketing plans are managed for clients.
The management of a holding company is focused on overall company growth, which takes the focus away from clients and performance. It is not as specialized.
Take a look at Ogilvy, for example. Brands dream of working with this prestigious worldwide advertising agency known for creating award-winning marketing. Ogilvy is also one of sixteen agencies that is part of one of the largest advertising holding companies in the world, WPP. So when you choose to work with Ogilvy, you are not only working with one company.
On the surface, this may sound like the deal of a lifetime—a group of talented agencies at your company’s fingertips. But in reality, the way a holding company functions, the more talent that is mixed together means the less differentiation among individual agencies.
In contrast, an agency collective is composed of independently owned and operated companies that come together to bring seamless and specialized knowledge to clients.
To contend with the large price tag that comes with working with larger agencies, a collective focuses on an integrated solution.
A brand will work with a variety of agencies that each focuses on its area of specialty. Forget answering to a higher power. There is one agency that thrives on all things media, another with analytics at its core, one that puts brands on the map, and another that is a social media guru.
Imagine the jaw-dropping marketing your company will have with that type of teamwork.
How a Collective Model Offers a Marketing Edge
A holding company will offer team solutions, but what are you really getting? A brand-recognized company that competes by dividing itself into different extensions, and at the end of the day, has lost focus of what their company is all about.
When you choose to work with an agency that is part of a collective model, you are giving your company a marketing edge. How?
Executive-Level Attention
Expect account directors and top management to help make important decisions for your account.One Agency Experience, Combined Strengths
Think of a group of agencies operating under the same mindset, but capitalizing on what they do best.Diversity
Agencies from different ethnic, social, and cultural backgrounds, all working together to reach a bigger market.
At Titanium, we incorporate the collective model and thrive on working with a diverse group of top agencies that excel in what they do.
Ready to experience the success of working with a collective model? We are here to help you make the transition and start reaping the benefits. Start a conversation with us at ti@titaniumww.com.