How Production Companies Are Taking a Bite Out of Agency Business

They're adding creative and strategic services

Illustration in pink, black and white showing pipes and machines.
Traditional agencies aren't as well equipped to handle project based work as some production companies. Getty Images

It’s no secret that holding companies have their backs up against the wall as MDC Partners is up for sale and WPP is mashing agencies together left and right in order to survive and hopefully flourish again. There are a number of reasons behind their struggles, but according to Pivotal Research senior analyst Brian Wieser, the “single most important factor” contributing to the holding companies’ declining revenues might be from brands cutting costs on creative, often working directly with production partners.

This story first appeared in the Jan. 14, 2019, issue of Adweek magazine. Click here to subscribe.
@ErikDOster Erik Oster is an agencies reporter for Adweek.