Patrick Biddiscombe argues traditional ad agencies prioritize stock prices over client results, outsourcing work while charging huge fees. Young people should start independent agencies instead of joining holding companies that run on opaque programmatic models.
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If you're a creative agency for everybody that doesn't know what happens on Madison Avenue, if you're an iconic creative Ogilvy, let's use an iconic one. You get paid millions and millions of dollars just to think of one commercial. You don't even make it. You outsource it to a production company literally to think, make decks and present. And then even worse, Programmatic Digital, they make so much money in these black boxes justified by CPM costs. Like the whole ecosystem is really, really pissing me off. And it. I believe that the reason I'm still building an agency, I really want to tear down Madison Avenue with VaynerMedia. And when I say tear down, I don't wish bad on anyone. I just believe that the interests don't align enough. And I'm hoping that I inspire a lot of kids that are coming out of ad school to build an independent agency and not sell to a holding company. Because if you sell to a holding company, it goes back to what's happening. I'm not even mad at the holding companies. They're publicly traded companies and they, they care about their stock value, not about driving business results for their clients.