“Advertising Agencies Are Not Dying. In Fact, It’s Quite The Opposite”, A Must Read!

If this is news to you, this read is recommended for you.

The delicate balance in being new-age ad agencies in Delhi is to understand the numbers that are given to you and helping consumers understand what it means. What forms of advertising work, and how do advertising agencies tap into conversations? It’s about knowing where to split costs to cover your bases – that’s seven billion mobile devices to start with.

Who is in the Business of Acquisition?

According to a source in Business Insider that published an article, it’s not the ‘big bosses’ in advertising that are into acquisitions. Evidently, in 2016, it has been the mid-scale consulting companies, publishers, and Cloud companies that are doing the fighting. The portion of the business is valued at (US) fourteen billion dollars, with a 150% increase compared to 2015. There is a notable trend in consulting firms acquiring smaller creative agencies.

Why all the negativity?

It’s true that you will come across countless articles that predict the doom of the olden advertising model. There are qualms that the model will be reinvented. However, let numbers do the talking. If the model was ‘broken’ why were 80% of the acquisitions made last a year a 150% growth from the year before? Why is everyone competing to have their slice of advertising?

Who else is investing?

IBM, YouTube, Google, and Vice have acquired smaller advertising agencies. They are supposedly specialists from branding and influential marketing.  This proves that advertising agencies are anything but antiquated. It looks as if this is anything but the truth, making advertising agencies the most sought after types of businesses – a good investment option, and an ideal way to diversify the business.

Adapt or Die

Advertising agencies need to reinvent themselves if they need to survive in the market. In a traditional sense, they were only required to look at broadcast and print, so for those agencies who have failed to recognise that time require them to look at social and digital advertising will inevitably lose out. With technology, some industries had to make certain changes, but for advertisers, it was a whole new ball game. Being good at what they have always been doing would not make them the best of what the customer expects.

If advertising agencies are still pumping thousands of dollars on televisions commercials, you know that they aren’t the agency for you. Take, for instance, Coke and how well they reach out to consumers via Instagram with its #shareacoke campaign; they know how to address millennial generations that have completely moved away from traditional to digital. In recent times, companies like Bud Light took the industry by storm with a unique form of advertising that had zero photo shoots, models, creative agency involvement, no preparations – all they had to do was convert an image everyone uploaded holding a Bud Light into an online advertisement. The response changed the way the industry did their business.


Advertising companies are not dying – but the ones who fail to adapt, are. If, as an advertising agency, you have not shifted your focus to what people want to consume, you could be the best in business but will suffer the implications. Many larger companies are acquiring advertising companies for its many benefits, making it, therefore, a very lucrative investment.


Published by

Apppl Combine- A to Z Advertising

APPPL Combine is a hybrid & innovative fast growing multinational marketing communication agency which operates on a borderless front, having owned offices in Singapore, UK, India and Hong Kong.

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