The Real Role Of Communication Agencies Today

The new president of UDECAM, Gautier Picquet, has stirred up the controversy over the role of Google and Facebook in the advertising market. In a recent interview , Picquet talks about the role played by agencies vis-à-vis GAFA (acronym referring to Google, Apple, Facebook and Amazon). Stéphane Levy responded to these statements by bringing his personal and professional vision as President of the Labelium Group . These two points of the Oman WhatsApp Number List view, which we reproduce below, allow us to analyze the challenges that communication agencies are currently facing.

As an agency, is it possible to limit investment on Facebook and Google? One of the points raised by Gautier Picquet in his interview is the way in which agencies should react to certain GAFA decisions that do not appeal to the advertising sector. The president of UDECAM (Union of media consulting and buying companies) pleads for the industry to maintain a strong position: “In short, that we stop bitching against Facebook and Google with the forums and that we cut budgets when you think they are wrong . We still have financial leverage. In France, Google and Facebook respectively capture nearly 3.3 billion and 1 billion euros net, most of which pass through our hands.

Faced With These Assertions, Stéphane Levy Wonders:

Isn’t the agency’s role to guarantee the best allocation for its clients? How would you react if your banker told you not to use such insurance or such investment for you, on the pretext that he does not appreciate them even though the cost or the return would be better? And he adds: “Personally, I would find that suspect at best, and I would tell him that it is not his money, that I pay him to ensure the best result / take advantage of his expertise, within the framework that I define for him” . The dominant position of Google and Facebook Gautier Picquet also examines the question of the hegemony of GAFA in the digital advertising market and disapproves of the way in which Google made the decision to change the management of third-party cookies on Chrome.

“This is proof that Google is a company that first thinks about its interests and wants to impose its vision on the rest of the market,” he says. Faced with these statements, Stéphane Levy questions Picquet: “Don’t you think that this is the feeling of independent agencies vis-à-vis the BIG 6 (you also proudly announce the 99% of investments that UDECAM represents: can we say that more than 90% go through the BIG 6? Isn’t that a very strong position?).

For My Agency, It Has Been A Constant Struggle For 15 Years To Try

to emerge in the face of you, your political power, the discounts of complex control to apprehend (85%, 90%, 95%?), To your strength commercial. ” Google and Facebook have transformed the industry in which agencies operate: they must now change their business model to face the continuing threats of internationalization or other independent challengers. STÉPHANE LEVY , PRESIDENT OF THE LABELIUM GROUP The narrow profit margins of the advertising sector According to Gautier Picquet, agencies must know how to refuse a pitch when the pricing conditions are derisory or when “we know that it is lost in advance. In this sense, he argues that we must stop accepting the unacceptable, starting with the fact that compensation levels are aligned neither with the skills of the consultants nor their workload.

As for the challenge posed by the profit margins of the advertising industry, Stéphane Levy admits that the pressure is colossal, but it turns out that there are new players who manage to stand out and who seem to be able to make a living. “Take The Trade Desk, a company created barely 10 years ago, valued at nearly 12 billion, ie levels almost equivalent to those of Publicis or WPP, with only 1,500 employees,” explains S. Levy.

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