AOR model declared “dead” as brands require diversification beyond creative and media

AOR model declared

According to the most recent R3 New Business League report, “the AOR is dead” because creative and media are winning more pitches than in previous years, but at lower values. Large advertisers are also combining their marketing efforts with ad holding companies that provide integrated services that go beyond conventional creative and media.

The value of new business fell by 42% in the US. In the final month of the year, independents OKRP, Barkley, and Zambezi joined the top 10 U.S. creative agencies, overtaking IPG’s R/GA, Publicis Groupe’s Leo Burnett, and WPP’s VMLY&R as CMOs sought “bold ideas that maximize value.”

The shifts in new pitch wins and business value globally imply that brands are seeking to diversify services beyond traditional creative and media into e-commerce, data, and performance marketing — areas that agency holding companies have heavily invested in.

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