The agency world is shrinking. Alex Leikikh, global CEO at MullenLowe Group, thinks there is an oversupply of agencies in the U.S. market. He believes that as more clients start to go in-house, there will be more mergers and more agencies will go out of business.
“As demand for products that agencies offer starts to go in-house, we will see more consolidation,” Leikikh said on this week’s episode of Making Marketing. I see price-cutting, agencies not competing for certain brands will compete for them. This is a classic oversupply situation. It either drives prices down or drives more consolidation over time.”
MullenLowe Group is also a result of a merger that happened over three years ago.
In our latest episode, Leikikh discusses management lessons he learned, the importance of bundling creative and media talent together and more. Read the full story on Digiday.