The Future of Holding Companies: Agencies or Something Else?
Ad industry analyst Tim Nollen on where agency holding companies are headed—and what’s forcing them to change.
Agency Business is brought to you by Brian Wieser’s Madison and Wall, in collaboration with Olivia Morley's FusionFront Media.
Good afternoon, and welcome to Agency Business for the week of Feb. 24, 2025. Episode 10 is available now on Spotify, Apple Podcasts, or wherever you listen.
Tim Nollen, a longtime ad industry sell-side analyst at Macquarie Group Ltd. and previously at J.P. Morgan and Bear Stearns, joins co-hosts Olivia Morley and Brian Wieser to discuss the state of agency holding companies, their challenges, and the sustainability of their business models.
Tim explains how financial pressures, shifting client demands, and competition from consulting firms and ad tech companies are forcing holding companies to evolve. He shares insights on media and creative integration, how agencies are adapting to new economic realities and the potential impact of the Omnicom-IPG merger.
He also reflects on his career analyzing the business of advertising and shares his perspective on where the industry is headed next.
Agency Business is sponsored by FirmDecisions, part of Ebiquity plc, the world's largest marketing contract compliance specialist, dedicated to enhancing commercial transparency in client-agency relationships.
News of the Week: Discussed in Episode 10
Globant reports fourth-quarter 2024 earnings.
Our Takes
MW: Globant is one of the most important companies that I think too few people in the agency industry know about. They now have more than $2.4 billion in annual revenue and are growing by nearly 10% annually. If anyone wants to see what agency holding companies need to invest in to foster long-term growth, watch Globant.
FFM: Globant is not acknowledged as much as it should be in the U.S. market, but I anticipate that changing soon. Ten percent annual growth is a lot compared with other publicly-traded companies in this space.
Havas and Publicis acquire in Latin America.
Our Takes
MW: Latin America has been an important source of growth for most of the holding companies recently. There’s inflation, sure, but a really healthy agency market as far as we can tell. As Globant has illustrated, the region is also a major source of talent for offshoring.
FFM: Latin American agencies are becoming popular acquisition targets. It seems that those agencies dominating the market with specialty expertise are even more attractive. Publicis’ acquisition of BR Media Group gives Publicis an advantage in the influencer marketing space. There’s also a data play—melding BR Media Group’s proprietary tech and data with Epsilon’s.
The Federal Trade Commission is investigating the Omnicom-Interpublic merger.
Our Takes
MW: Can confirm—we were interviewed as part of it! Hear more about what we were asked on this week’s episode.
FFM: I will direct readers to the episode and also say that I guess we should be happy the FTC under this administration did not ask about GARM or other nonsense, such as agencies’ so-called collusion against conservative news outlets.
Lindsay Pattison is leaving WPP.
MW: It’s always hard to identify what a departure means—whether someone is leaving voluntarily or involuntarily and whether they are going to something or running away from something (!)—but Lindsay was one of the most important people at WPP. In an industry where people are strategy, it’s worth being aware of this change.
FFM: We’ll never know for sure. How could we? However, Adweek’s Rebecca Stewart notes that Lindsay had been talking with Mark Read since last year about “taking a break.” It looks like she’ll stay on through May and help hire her successor. Regardless of why she’s stepping down, this is another major leadership shakeup for WPP, happening alongside many others.
Notable Guests from Past Episodes
Kevin Wassong, founder and CEO of mktg.ai
Samir Balwani, founder and CEO of independent media agency QRY
Chrissie Hanson, CEO of OMD USA
Ruben Schreurs, CEO of Ebiquity
Kamran Asghar, CEO and co-founder of independent media agency Crossmedia USA
Joanne Davis, founder of Joanne Davis Consulting
Josh Lane and Matt Ferebee, founders of indie agency FerebeeLane
Jay Pattisall, vice president and principal analyst at Forrester Research
Paul Woolmington, CEO of Canvas Worldwide