Why Production Companies Are Eating Up Agency Business!
ADWEEK|January 14, 2019

Why production companies are eating up agency business with new creative services.

Erik Oster

It’s no secret that holding companies have their backs up against the wall as MDC Partners is up for sale and WPP is mashing agencies together left and right in order to survive and hopefully flourish again. There are a number of reasons behind their struggles, but according to Pivotal Research senior analyst Brian Wieser, the “single most important factor” contributing to the holding companies’ declining revenues might be from brands cutting costs and working directly with production partners.

Brands want content delivered more efficiently and are moving toward more project-based work. That demand is driving new models that bring production and creative services together. Plus, the limitations of the traditional agency model leave creatives and strategists longing for a new approach. The result is a growing number of production companies that have shifted their focus to provide expanded services to clients, often at more attractive terms.

As clients search for efficiency, they “are calling up production companies and saying, ‘Hey, can we just cut out the agency and just do that with you?’” explained Serge Patzak, cofounder of production company 1stAveMachine.

Clients’ in-house teams are facilitating and fueling the trend, as they’re built with former agency people who know they can capitalize on the shortcomings of traditional shops.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM ADWEEKView All

Whole Foods' Will Chau Has Had A Scrappy Path

The path of Whole Foods Market’s global director of creative and branding has been a scrappy one.

3 mins read
ADWEEK
March 4, 2019

This Is Your Brain On Marketing

Brands toy with sensors to better understand their customers.

3 mins read
ADWEEK
March 4, 2019

The Barbie Doll

On the eve of her 60th birthday, a look at. America's most primped, perfect and polarizing plaything.

3 mins read
ADWEEK
February 25, 2019

Marketing Needs To Be Inclusive

Diversity efforts must be authentic and go further than checking off a box.

3 mins read
ADWEEK
February 25, 2019

OMD

The agency clawed it's way back to the top by making ‘better decisions, faster’.

6 mins read
ADWEEK
February 25, 2019

Meet The New Broadcast TV Chiefs

After taking over last fall at ABC, FOX, and NBC, these four execs are ready to reveal their strategies.

6 mins read
ADWEEK
February 25, 2019

Initiative

Today’s media agencies face a new slew of challenges, as more clients slash budgets, issue RFPs and take everything in-house, from planning to programmatic. But clients aren’t the only ones making big changes. Both OMD and Initiative bounced back from challenging years with strategic pivots, picking up new business from brands like Daimler Mercedes, Liberty Mutual, Revlon and the U.S. Army. Breakthrough network Essence transcended its reputation as Google’s digital resource to score new partnerships with BP, Peloton, T-Mobile and more while doubling its headcount and adding 11 offices around the world. On the work front, these shops proved their media mettle with headlining campaigns for Amazon, McDonald’s, Target, USA Network … and who could forget the International House of Burgers? Read on to find out why these three earned Adweek’s Media Agency of the Year honors

5 mins read
ADWEEK
February 25, 2019

Essence

A strong vision and a key investment from holding company WPP Fueled an incredible year.

5 mins read
ADWEEK
February 25, 2019

Eryk Rich

Deutsch’s Head Of Music Straddles The Record And Advertising Industries.

2 mins read
ADWEEK
February 25, 2019

Agencies Scramble Over OTT

Investment teams try to get up to speed while they educate clients.

3 mins read
ADWEEK
February 25, 2019
RELATED STORIES

L.A.'s Mystery Banker Behind Hollywood's China Money

Dominic Ng is already fielding calls from Chinese investors interested in Paramount, as the low-profile banker is one of the few financial connectors between U.S. studios (Universal, Fox, Lionsgate) and the emerging power.

4 mins read
The Hollywood Reporter
Double Issue - March 11-18, 2016

How India Can Become The Factory To The World?

The production linked incentive scheme aims to build an indian manufacturing base across 13 key sectors. What works. What doesn’t.

10+ mins read
Business Today
May 02, 2021

उत्पादन आधारित प्रोत्साहन योजना से देश में नवप्रवर्तन को मिलेगा बढ़ावा

नीति आयोग के मुख्य कार्यपालक अधिकारी अमिताभ कांत ने कहा

1 min read
Dakshin Bharat Rashtramat Chennai
February 24, 2021

उत्पादन में सुधार मगर लागत की चिंता

• चेन्नई के वाहन क्लस्टर में हुंडई ने सबसे पहले मई में शुरू किया उत्पादन • अधिकतर मूल उपकरण निर्माता कंपनियां पूरी क्षमता से कर रही हैं परिचालन • आपूर्तिकर्ताओं ने कहा कि मांग उत्पादन से अधिक लेकिन कच्चे माल और श्रम की बढ़ती लागत से उत्पादन बढ़ाने में सक्षम नहीं • कच्चे माल मुख्य रूप से स्टील के दाम में 50 से 80 फीसदी का इजाफा • अंबात्तूर एस्टेट में 50 से 80 हजार और कामगारों की जरूरत

1 min read
Business Standard - Hindi
February 15, 2021

बजट 2021: सरकार कई वस्तुओं पर घटा सकती है सीमा शुल्क

20 से अधिक उत्पादों पर आयात शुल्क में कटौती की जा सकती है

1 min read
Haribhoomi Delhi
January 26, 2021

आर-क्लस्टर से उत्पादन शुरू

रिलायंस और बीपी ने केजी बेसिन में एक और क्षेत्र से गैस का उत्पादन शुरू किया

1 min read
Business Standard - Hindi
December 19, 2020

अगले पांच साल 10 सेक्टरों में होंगे 2 लाख करोड़ रुपए खर्च

कोरोना से परेशान कारोबार जगत को केंद्र सरकार ने दिया दिवाली गिफ्ट

1 min read
Haribhoomi Delhi
November 12, 2020

GATEWAY TO FUTURE

Digital Studio turns twelve! Time to bring forward the hidden-gem concepts waiting to transform the M&E universe

8 mins read
Digital Studio
October 2020

अब भारत बना रहा लेजर हथियार

चीन और पाकिस्तान जसे दुश्मनों के छूटेंगे पसीने

1 min read
Haribhoomi Delhi
September 15, 2020

रक्षा क्षेत्र में दुनिया के लिए उत्पादन करने का लक्ष्य हासिल करना है: राजनाथ सिंह

रक्षा मंत्री राजनाथ सिंह ने बृहस्पतिवार को कहा कि घरेलू रक्षा उद्योग को बढ़ावा देने की अनेक पहलों का मकसद केवल भारत को सैन्य उपकरणों और प्रणालियों के उत्पादन में आत्म-निर्भर बनाना ही नहीं, बल्कि पूरी दुनिया में उनकी आपूर्ति करना भी है।

1 min read
Samagya
August 28, 2020