4. P&G Unleashes New Agency Models
Proctor & Gamble, one of the world’s largest advertisers, dominates the industry with its extensive network of brands and is about to shake things up with the creation of three new agency models. The first model will be comprised of multiple agencies led by Publicis Groupe, which will primarily be responsible for P&G’s fabric care brands including Tide, Gain, and Downy. The second model, called “Fixed and Flow”, designates agencies a fixed retainer of scheduled work each year, with a budget reserved for other projects that can be allotted to other agencies. The last model is the one we have been seeing develop over recent months, and that is the company taking more of the media planning and buying back into its own hands, clearing middlemen to make room for more efficiency and control. Some have speculated that P&G’s massive influence and new agency models will shake up the status quo and transform the advertising world. It’s too early to say, yet. Not many companies have the vast resources and buying power to pull off this type of advertising structure. But, if other mega-advertisers were to follow suit, the transformation in the industry would be massive.