Going Horizontal to Maintain Vertical Growth
There is plenty of evidence to suggest that the agency world is going “horizontal.” Sir Martin Sorrell used the term “horizontalism” recently at the ANA conference to describe the centralized adoption of services across agency networks. He was specifically referring to advertising production and we were proud that he praised Deliver and Hogarth as prime examples of this trend.
We have already seen horizontalism occur with media services across agency networks and we see the same trend occurring in production services. The benefits for both agencies and marketers are simply too attractive to ignore.
We all win when we play to our strengths
Strategy and creative thinking have always been attributes that differentiate both agencies and brands. Shifting production to centralized specialists within the same holding company allows agencies to focus on what they do best. This translates to a net win for both agency and marketer in both quality of thinking and integrity of deliverables.
An increase to the bottom line
Perhaps the most significant and tangible benefit is cost savings. The allocation of production services to in-network resources in emerging markets can generate remarkable efficiencies. At Deliver, clients consistently realize savings between 25-50%.
Like Sir Martin, we believe that “horizontalism” is the new reality in agency delivery. Becoming a part of this increasing trend may hold the strategic key to keeping marketing revenue moving in a vertical direction as the global economy continues to remain horizontal.