The Full-Stack Ad Agency

6 min Read

The New Age, Full-Stack Ad Agency.

Add a dash of digital Products, a little e-commerce, adequate data, AI, consultancy services, & influencer management to creative, content, digital, media, & activation – along with a hint of a link between agency fees & brand-revenue. Welcome to the full-stack agency – the future of the full-service ad agency.

Evolution

The world’s first ad agency could have started almost 150 years ago and was probably a sales agent for local newspapers. But the future ad agency will operate as an agent of change for marketers. What a transformation. 

(Radio & TV media took many decades to launch & mature, while digital achieved this much faster.)

Post the 1990s separation of media & creative, media became the business driver of agencies. Over the years, global agency giants have been created with steady consolidation. In the past decade, consolidation has continued with digital media & technology playing the lead role, despite any negative sentiments in the industry. And today, digital & technology have a significant share.

With so much consolidation, scale has become one of the power factors for agencies. Going forward, today’s big 5 agency groups : Omnicom, Publicis, WPP, Dentsu & Havas, may even consolidate further to become the big 4 in the future. Amalgamations of diverse & specialist agencies already offer single-point services for tech, media & creative – the foundation of full-stack big agency strategy today. 

Agent of Change

The agency’s scope of deliveries goes beyond traditional advertising & marketing services, to deliver marketing outcomes. No longer acting as mere selling agents or delivery partners but contributing directly to brand revenue. With a new mix of technology, projects, & marketing services to promise secondary or even primary outcomes (sales) for their clients. 

Besides acting as reselling merchants, agencies will execute (are already executing) end-to-end tech projects. Going forward, they will offer to design & implement & technology solutions with fees based partially on outcomes. 

These trends are not confined to the bigger agencies. Mid-sized agencies will manage to deliver with outsourced expertise. And these trends are confirmed because some of the big 5 consultants (not ad agencies) have already moved into the area of marketing services to help their clients build and manage customer experiences, commerce, and marketing (to paraphrase one of the big 5 consultant’s marketing services.)

Put simply,  your agency is no longer just an agency – it is an agent of change for marketers.

Mediaware has been in the forefront of commercial control systems for ad agencies for many decades. The more complex the business scenario & models, the greater the need to define & ensure target margins, accurate & prompt central billing, & general commercial discipline. So we continue to improvise and add value to our clients.

“Omnicom’s acquisition of IPG exemplifies this shift. The merger combines Omnicom Media Group, IPG Mediabrands, Acxiom’s proprietary data and technology, and Omni — Omnicom’s marketing OS — to deliver media clout and content velocity,” he said.

Pattisall sees holding companies becoming the algorithm of record (AOR) rather than the ad agency of record. 

“Marketers will no longer buy agency talent to produce concepts,” he said. “They will buy algorithms that agency talent customizes to create, activate, and scale marketing. 

“A new kind of ‘AOR’ emerges from rapid capability expansion, software platforms, and consolidation. The agency of record becomes the algorithm of record, customising instructions for how, when, and where to execute on behalf of a brand. 

“The algorithm of record integrates the agency’s marketing OS, proprietary data, and client IP. It synthesises objectives, audiences, and channel opportunities to produce a signature style of creativity unique to each brand. 

“While agency consolidation — such as Omnicom’s acquisition of IPG or the rumoured sales of dentsu and WPP — dominates headlines, the real story is this upheaval. 

“Can agencies expand without losing existing clients or new business opportunities? 

“And can agencies — large and small — deliver services as a software and an algorithm-of-record proposition? The answers to these questions will determine marketers’ choices in 2026 and beyond.” 

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