The Great Ad Agency Merger: How Silicon Valley Convinced Madison Avenue to Pay for Its Own Obsolescence

The Great Ad Agency Merger: How Silicon Valley Convinced Madison Avenue to Pay for Its Own Obsolescence

The merger between Omnicom and IPG isn't just another corporate marriage announced via the usual "synergistic value proposition" press releases. This is what happens when two advertising giants wake up and realize they've become very expensive middlemen for AI platforms.

The Real Winners? in all of this consolidation are the Tech Bros (again). While everyone's focused on the merger numbers, Silicon Valley is having the last laugh. They've somehow convinced the entire advertising industry to:

  1. Pay their own employees to train AI tools that will eventually replace them
  2. Pay subscriptions to AI tools that are cheaply and easily available to everyone else
  3. Pay billions in media dollars to the same platforms that are eating their lunch

So what does this merger portend for the various ad agency departments? Here's an AI-assisted forecast:

Creative Departments

  • Before: Coming up with impactful concepts, content and creatives
  • After: Arguing over who has the best prompts while paying $20/user/month for the privilege

Media Buying Department

  • Before: Planning and optimizing media campaigns across platforms
  • After: Getting trained by AI chatbots on how to use automated platform tools, while pretending there's still strategy involved in clicking on the 'optimize' button

Strategy Teams

  • Before: Conducting market analysis and uncovering deep consumer insights?
  • After: Explaining to clients why the AI's market analysis isn't a hallucination

Account Management

  • Before: Managing and deepening client relationships?
  • After: Managing client’s awkward questions about why they should pay agency rates for AI-generated work, whilst using objection-handling scripts written by ChatGPT


While this merger drama unfolds, here's what's probably happening in other agency boardrooms:

  • WPP and Publicis are probably wondering if they should just cut out the middleman and merge with OpenAI
  • Havas is quietly thanking their lucky stars they're owned by Vivendi
  • Every indie agency is suddenly looking very smart because it turns out you don’t need 3 VPs to write prompts

The industry is witnessing what happens when everyone suddenly realises we’ve been paying Silicon Valley for the privilege of being disrupted. It's like watching two Bras Basah bookstores merge so they can afford to buy more Amazon Prime subscriptions.The tech bros have effectively turned the entire advertising industry into the world's most expensive prompt engineering bootcamp.

Well played, Silicon Valley. Well played.?

#AdTechLife #AITakeover #OmnicomIPG #TechBroFTW

Barry Reicherter

Managing Partner - Insights and Innovation Leader. Forbes Council Member.

2 个月

Excellent post Allan.

Ai-Ling See

LinkedIn Top Voice: Management | Doctorate Student | Global Marketing Leader| Innovation Translator | Business Development Creator | Architecting purpose driven workforce strategies | Engineer

2 个月

Well written! Eye opener! No spoilers, spent two minutes reading the scoop!

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