CANNES\u00a0 — In the age when brand marketers can use cloud-based tools to carry out many of the functions of their media agencies, the prospect of disintermediation seems to pose a risk to the historic agency model.<\/p>\n
Omnicom Group media agency OMD understands that risk. Its global CEO Florian Adamski raised eyebrows around his company back in February when he was quoted saying<\/a> that: “A lot of agency people have forgotten that we do not have a natural right to exist.”<\/p>\n In this video interview with Beet.TV, Adamski says the likelihood of brands taking agency functions in-house is irreversible – but so is the growing likelihood that agencies will find new functions to perform for their clients.<\/p>\n “It is all about effectiveness,” he says. “I don’t think that this in-housing trend is something we will ever reverse. On the flip side of that, actually ,I don’t think that the in-housing trend will infinitely go on.<\/p>\n “Clients are starting to realize that there is a role for agencies, that there is a role for service providers that have a very, very broad view of the spectrum and the different approaches and solutions that are out there to drive better business.<\/p>\n The number of US brands which have launched in-house agencies has reached 78% \u2013 up from 58% in 2013, according to the ANA\u2019s\u00a0In-House Agency Report<\/a>.<\/p>\n But many figures vary, and chatter often suggests that implementation isn\u2019t as easy as going all-in on in-house.<\/p>\n Regardless, Adamski sounds a warning.<\/p>\n “(Some agencies) have lost clear sight of the fact that clients don’t want to work with agencies,” he says. “Clients don’t even want to work with a consultancy. Clients want business outcomes.<\/p>\n “Clients have realized that taking back control and having ownership of data, of contracts, of technology might be a good thing.”<\/p>\n\n