Key Takeaways
- Independent media agencies are investing in technology to compete with agency holding companies
- Independents tend to be more "promiscuous" in their adoption of tech, not committing to one provider and leaving their architecture open to adapt to changing tech needs
- Technology enables independents to deliver similar or more agile results for clients than holdcos, which often carry legacy tech baggage
- Indies are focusing on tech innovation as a foundational principle, emphasizing the importance of agility and adaptability in the ever-changing media landscape
- Free tech solutions, such as AdsCopilot, can help small independents compete with larger shops
Introduction to Independent Media Agencies
Independent media agencies are positioning themselves to take advantage of a potential shakeout of medium-sized clients dropping agency holding companies. These independents are investing in technology that they believe will help them compete effectively with the larger holdcos. Horizon Media, a leading independent agency, recently announced the launch of HorizonOS, an "open operating system" designed to follow a different path than the automation-first strategies that dominate the industry. This move is seen as a significant distinction between independents and holdcos, with the former tend to remain more open and adaptable in their adoption of tech.
The Advantage of Being Independent
Independents like Horizon Media and PMG are emphasizing tech innovation as a foundational principle. This approach allows them to be more agile and adaptable in the ever-changing media landscape. Scott Shamberg, CEO of Mile Marker, notes that independents have an advantage when it comes to tech adoption, as they don’t have a lot of "tech debt" and can architect their solutions in a way that is free of walled gardens and very customizable. This approach enables independents to deliver similar or more agile results for clients than holdcos, which often carry legacy tech baggage from prior tech innovations.
The Role of Technology in Independent Agencies
Technology is playing a crucial role in independent agencies, enabling them to compete with holdcos and deliver high-quality results for clients. PMG, for example, has emphasized tech innovation as a key principle, with its founder, George Popstefanov, being a self-described "tech nerd." The agency has built its AI-driven connected marketing platform, Blu, to be agnostic in the various AI LLMs it uses. This approach allows PMG to be more flexible and adaptable in its tech adoption, rather than committing to one provider. Suraj Gandhi, PMG’s global head of content & studio, notes that technology is the "connective tissue" that ties everything together, empowering humans to do great work for clients.
The Focus on Workflow Automation
Independent agencies like Crossmedia are focusing on ensuring that the entire process works smoothly for clients, from pitching to planning to execution to measurement. Kamran Asghar, Crossmedia’s CEO and co-founder, notes that the industry is still "stitched together by Excel," and that there is a need for automation in the workflow between planning, buying, campaign management, and reporting. Crossmedia is putting all its energy towards automating this workflow, with an agentic layer, to make the process more efficient and effective for clients.
The Availability of Free Tech Solutions
Sometimes, tech can even be free, which can help small independents that may not have the resources to invest in ad tech. AdsCopilot, for example, is a real-time, AI-powered assistant that functions directly within an agency staffer’s web browser, offered for free by Knower Tech. This type of solution can help level the playing field for small independents, enabling them to compete with larger shops. George Popstefanov notes that the use of tech has been a significant accelerator for PMG, with half of every hire being an engineer or product person. This approach has enabled PMG to be more competitive with holdcos, with a 5x increase in pitching holdco clients versus last year.
The Future of Independent Media Agencies
The future of independent media agencies looks promising, with a growing emphasis on tech innovation and adaptability. As the media landscape continues to evolve, independents are positioning themselves to take advantage of new opportunities and challenges. With their focus on agility, adaptability, and tech innovation, independents are likely to continue to compete effectively with holdcos and deliver high-quality results for clients. As Popstefanov notes, the long-tail hope is that adept use of tech will lead to being more competitive with larger shops, and so far, it seems to be working for some. With the ability to adapt quickly to changing tech needs and the availability of free tech solutions, independents are well-positioned to thrive in the ever-changing media landscape.
