What the MediaMonks Acquisition Means for the Future of Advertising

Advertising has been changing and the production landscape has been going through an evolution. As advertising continues to evolve into a more project-based structure, production companies are benefiting from this shift by capitalising on their already nimble structures.

Through these projects, we are seeing a growing relationship between ad agencies and production companies. I think we’re at a clear tipping point and, in the same way that major holding companies started buying up agencies years ago, we will start to see this across production as well. The future of advertising and production might be an umbrella network with multiple agencies and production companies within it.  

Above: Eric Berkowitz, founder and president of production outfit, Humble.

There is proof all around us that this is the direction in which we are headed, and a perfect example is Sir Martin Sorrell’s acquisition of MediaMonks. This acquisition provides unspoken commentary that highlights Sir Martin’s belief and recognition of the benefits that production companies can bring to the table. This is a realisation that I hope lights the way for future partnerships between ad agencies and production companies that I believe will be incredibly beneficial.

Here is what production will bring to the hybrid model of tomorrow.

Above: Sir Martin Sorrell, whose new company S4, recenly acquired MediaMonks 

Access to Resources

Agencies have been building their own in-house production and post production capabilities and they know that brands are also starting to reach out to production companies directly.

However, the pool of resources available to a production shop or a post house is completely different than what is available to an agency. In a way, we’re engaging in a trade deal that will provide the most efficient, strongest way to produce the best creative work possible with the best team available. 

Rather than agencies investing time and money into building new in-house capabilities and trying to mirror what a production company already has, they should be tapping into the resources production companies already have on hand to produce high-quality work, combining that with their own creative resources and combining everything under one roof.

"Rather than agencies investing time and money into building new in-house capabilities and trying to mirror what a production company already has, they should be tapping into the resources production companies already have."

Process

Beyond equipment, experts, and other resources readily available to production companies, they also have years of experience building up the processes and a production pipeline that can’t be learned or built overnight. Apart from the work that post production and production shops offer to agencies, there’s a culture that they would bring in that that differs from agencies, allowing for a second perspective around the way they work and the relationships they build.

By acquiring a production company that offers an umbrella of services with an ironed-out process, like Humble does with Postal with 12 years of experience, an agency has the opportunity and flexibility to work with the company in any way that fits with each project.

"Agencies and production companies will align with each other and become allies rather than competitors."

Culture

There’s a difference between agency culture – the way they work and the relationships they build – and that of a production or post production company. For example, MediaMonks already has a culture in place, and brands know them, talent is attracted to them, and they have established processes and resources. 

Production companies are all about a culture of making and doing, about multiple disciplines and experts in their craft coming together, while agency culture can be very ethereal, bigger picture/brand focused. At the end of the day, it is always about what is best for the client, but having the culture, the talent and the tools in place to jump in and do the best work is what makes these relationships most beneficial.

"I have never been more excited and enthusiastic about the change and opportunities in our industry that will become our new reality."

As this landscape progresses, and we enter into a post-AOR world, a few things are going it happen. For one, agencies and production companies will align with each other and become allies rather than competitors. Secondly, production companies will realise that by providing an umbrella of offerings, they will have a better chance of winning a pitch and keeping a client happy.

Shops that offer production and post production along with the creative strategy of an agency can offer clients more of a full-circle service than those that cannot. The acquisition of MediaMonks, I believe, is just the start of many more mergers to come in the ad agency and production space.  

I have never been more excited and enthusiastic about the change and opportunities in our industry that will become our new reality.