Lately, the advertising world has been all about big holding companies merging and gobbling each other up. The past few months alone have seen the merger of Omnicom and IPG and the merging of Leo Burnett and Publicis. At first, it might seem like bad news for smaller agencies, as the monsters get more and more monstrous. But the truth is, this shakeup opens up some exciting opportunities for independent shops to shine. 

1. More Room for Personalized Service

Big agencies tend to get bogged down in red tape and process and they can’t help but focus on their biggest accounts. With so many clients in their portfolios, it’s easy for smaller ones to get lost in the shuffle. I’ve seen it firsthand. If a large client isn’t happy, it’s all hands on deck, no matter what else, or who else, demands your attention. That’s where independent agencies can step in. California advertising firms, in particular, are fiercely independent, small and focused on project work. Indy agencies have that personal touch and boutique experience clients crave, especially after they’ve been treated poorly by large firms. 

2. Owning the Niche Game

We can imagine the sales pitch from these new, massive holding companies: “We have the resources to do it all in-house.” But, for most clients, that pitch feels a bit generic. Smaller, independent ad agencies offer true specialization. Take Division of Labor, an independent ad agency in California, for example. They’ve carved out a niche specializing in Series B startups, offering tailored strategies and campaigns that help these companies stand out during a crucial growth phase. Smaller agencies like this can scoop up clients looking for experts who really get their world.

3. Quick and Nimble Wins the Race

Big agencies often move like molasses thanks to endless approval layers and strict processes. Independent shops, on the other hand, can pivot quickly, react to market conditions, and deliver results faster. Clients with compressed timelines can go from strategy to creative, research and production in a few weeks. Indy shops can test and learn fast, adjust fast and be measuring results much quicker. 

4. Attracting Top Talent

Consolidation often means layoffs or frustrated creatives stuck in the corporate grind. Smaller agencies can offer clients top senior talent working on a fractional basis. And because they aren’t stuck in some holding company, the people working at independent California ad agencies are more motivated and driven. An independent agency like Division of Labor has a huge network of people with the specific experience needed for each individual client. Today’s larger holding companies are even more focused on reducing senior staff to lower costs.

5. Smaller companies seek like-sized partners

Small and mid-size brands are even more skeptical of these giant agencies. Even before the mergers, many clients were specifically seeking ad agencies started by people who used to work at large agencies. They know they’re getting top talent, they just aren’t paying top dollar for it. Independent ad agencies in California are often started when the consolidations happen and we can expect that to be the case yet again. So, yes, there will be more Indy Ad Agencies, but there will be far more frustrated clients looking for affordable, project-based partners. One Division of Labor client tells the story of how he found the Indy Shop; “I just started Googling ‘ad agencies started by ex Goodby Silverstein and partners creatives.”  As holding companies grow, they may push mid-sized or smaller clients to seek out the more approachable vibe of independent agencies.

6. The Underdog Factor

No one roots for Goliath. There’s something undeniably appealing about rooting for the underdog. Smaller agencies can lean into this, positioning themselves as the scrappy, creative alternative to the big guys. It’s a story that resonates with brands looking to disrupt their own industries. Especially for startups and B2B companies that are bringing new thinking to the market. They are the underdog and want the same attitude and drive in their agency partner.

So, while big holding company mergers might seem like they’re taking over the world, they’re actually creating golden opportunities for independent agencies to thrive. 

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The Small Agency Blog is produced by Division of Labor; a top San Francisco ad agency and digital marketing firm. The award-winning creative shop specializes in startups that have obtained Series B funding or higher. They also offer freelance services. Click here for a free consultation.