Holdco clients: take charge in 2025

By Steve Boehler

The world of large agency holding companies has lost its collective mind in the past 6 to 12 months.

Publicis led the way with an ever-increasing emphasis on principal buying and centralized teams working across differing agency brands.

Omnicom then ate IPG in an attempt to seemingly enjoy even more nontransparent media practices and headcount reductions.

Dentsu has undertaken a nonstop series of reorganizations and senior leadership changes, including the recent elimination of the North America Media CEO.

Not wanting to be left out, WPP dropped the hammer on GroupM, rebranding it WPP Media, rearranging 45% of staff and largely eliminating any differences in offerings between the three media “Brands” (Mindshare, Wavemaker, EssenceMediacom).

What does this mean for their clients?

There is no one answer to that question.

Different clients have different needs. And a client’s scale undoubtedly could impact an agency’s responsiveness to the client’s concerns.

Regardless, the fallout of these major holdco upheavals on their existing clients could be dramatic:

• Who’s in charge at the agency?
• Who is still on the client’s business?
• What do the new folks know about my business and brands and processes?

Of course, the smaller holdcos are generally NOT actively disrupting their clients and business. It’s the largest holdcos that seem to have forgotten who they work for. A “gentle” reminder may be in order! It is time for smart clients to reassert themselves.

Here’ a suggested to-do list:

Request an immediate business review. Include the following:

– an update on the team assigned to the business
– review recent soft and hard metrics
– expect an assessment of the current marketplace and economy and recommendations to adjust activities to better ensure success in 2025

This will get the agency’s attention.

Concurrently review MSA protections and SOW commitments.

Make sure your agency team is absolutely clear regarding the support that was committed to in your SOW. Review MSA clauses to better understand what was agreed regarding competitive conflicts and staffing. Get clear commitments in writing regarding any points of concern.

Ask for a formal staffing commitment for the remainder of 2025.

In many cases there are agency reorganizations and agency brand mergers and “sunsetting” ahead. What does this mean for your business?

If your agency cannot answer those questions with clear commitments, it is likely time to look elsewhere.

Kick off an immediate 360.

Do this even if you normally field a 360 around year end. Take the temperature of your marketing team now. Agency teams have been distracted and there may have been a negative impact on service and partnership. Be on top of your investment in this critical partnership at this critical time.

Move quickly to review if concerns remain.

Normally we counsel clients to take a very long-term view of their agency relationships. We work in a people business and improvement and high-level effectiveness doesn’t typically happen overnight.

This is different.

Major holding companies are making structural changes to how they organize, staff and support clients without the input of most clients and may even be unilaterally ignoring conflict designations in some cases.

It’s time to take charge of your agency relationship in a manner that best serves your brand.

About Author

Steve Boehler, founder, and partner at Mercer Island Group has led consulting teams on behalf of clients as diverse as Ulta Beauty, Microsoft, UScellular, Nintendo, Kaiser Permanente, Holland America Line, Stop & Shop, Qualcomm, Brooks Running, and numerous others. He founded MIG after serving as a division president in a Fortune 100 when he was only 32. Earlier in his career, Steve Boehler cut his teeth with a decade in Brand Management at Procter & Gamble, leading brands like Tide, Pringles, and Jif.