As I reflect on the Australian marketing and advertising landscape, it’s clear that the industry is undergoing a significant transformation. There has been increasing chatter about the rise of independent agencies and how they are disrupting the traditional dominance of large and global network agencies. Organisations are experiencing the benefits of employing indies and media teams are actively targeting independent agencies to achieve growth targets.
I believe this theme is set to continue and actually accelerate, brought about by the ongoing democratisation of technology, the impact of the changing way we work and the emergence of AI.
In the past, large and network agencies had a significant advantage over their smaller counterparts. They had access to superior resources, talent and technology, making it difficult for independent and smaller agencies to compete. However, over the last decade, the playing field has levelled out. Technology has become more accessible and the pandemic has changed the way we work.
One of the key drivers behind the growth of independent agencies is the availability of open data and research. In the past, access to premium research reports and data to inform strategy was a luxury reserved for large agencies with deep pockets. Reports from esteemed firms like McKinsey, WARC, and IBISWorld were often priced out of reach for smaller agencies, making it difficult for them to stay abreast of industry trends and best practices. However, with the proliferation of cloud-based tools and platforms, this landscape has shifted dramatically.
Today, independent agencies can access a wealth of leading research and data at a fraction of the cost. Many research firms now offer subscription-based models or à la carte pricing, making it possible for independent agencies to tap into high-quality research and data. For instance, McKinsey’s reports are now available through their McKinsey Insights platform, which offers a subscription-based model that provides access to a vast library of research and analysis. Similarly, WARC offers a range of subscription options that provide access to its extensive database of case studies, research reports, and industry insights.
Other research tools and platforms, such as Econsultancy, Statista, and Euromonitor, have also become more accessible to independent agencies. These platforms provide access to a vast array of industry reports, data and analytics, enabling independent agencies to match larger agency research teams.
Furthermore, the rise of open-source data, APIs and AI technologies has enabled independent agencies to tap into a vast pool of data and insights, at reduced cost. Platforms like Kaggle, Google Dataset Search, and the World Bank’s Open Data Initiative provide access to a vast array of datasets, research papers, and analytical tools, further levelling the playing field for smaller agencies.
This, in turn, has enabled independent agencies to develop more targeted and effective marketing strategies, measure campaign effectiveness with greater precision, and ultimately, deliver better results for their clients.
In the past, independent agencies faced a significant hurdle in reaching audiences at scale. With only a handful of traditional media channels available, it was challenging for smaller agencies to access large audiences and compete with larger agencies. However, media fragmentation and the proliferation of digital platforms has created new opportunities for independent agencies to reach consumers at scale. Self-service tools like Google Ads, Meta Ads Manager, LinkedIn Campaign Manager, TikTok and programmatic buying desks have democratised access to global audiences, enabling smaller agencies to execute complex digital campaigns that can reach billions of people across multiple platforms and geographies. With the ability to target specific demographics, interests and behaviours, independent agencies can now precision-target their ideal audiences, increasing the effectiveness of their campaigns.
Moreover, the rise of independent agencies is driven by a desire for greater agility, creativity and innovation. AI is emerging as a significant innovation in the creative services industry across the board, whether Generative AI to enhance and augment the creative process or using AI tools as part of the media planning and buying process such as Meta’s Advantage+ or Google AI to set the right bids, reach the right searches and create the most relevant ad for ROI. Clients are increasingly looking for partners that can respond quickly to changing market conditions, provide bespoke solutions and offer a more personalised service. Independent and smaller agencies are better equipped to deliver on these expectations, as they’re not constrained by the bureaucratic red tape that often hinders larger agencies.
Another significant factor has been the shift towards hybrid working arrangements brought about by Covid-19. A new way of working has emerged which has forced companies to adapt and this has created opportunities for indie agencies to attract high-caliber talent. Independent agencies can often offer greater working flexibility and with the rise of remote work, geographical constraints are no longer a limiting factor with top talent sourced from anywhere.
So it’s no surprise that independent agencies are emerging as leaders and larger agency networks are nervously looking over their shoulders. The rise of independent agencies in the Australian marketing and advertising industry is a direct result of the democratisation of technology, greater adaptability, innovation and the impact of the changing way we work. As the industry continues to evolve, I believe we’ll see even more top-tier indies emerge, offering innovative solutions, specialised expertise and a more personalised approach to client service.
At Now We Collide, we’re excited to be part of this movement and we’re committed to pushing the boundaries of what’s possible in the world of creativity and advertising. As the industry continues to shift, one thing is clear, the future belongs to those who are agile, adaptable, and willing to challenge the status quo.
Keir Maher, Managing Partner at Now We Collide