The consultancies are no longer coming … they’re here.
What had been a semi-serious joke in the agency world became a bit more real last month when Accenture Interactive, the international consultancy’s marketing division, announced plans to begin offering programmatic media buying services.
The news was significant, but not unexpected.
“It’s a perfectly logical step for Accenture Interactive to launch a programmatic service, because they already advise many businesses on technology, infrastructure, process and skills, which are essentially the key ingredients of an in-house programmatic operation,” said Tom Denford, co-founder and chief strategy officer of global management consultancy ID Comms.
Sarah Warner, digital investment lead for programmatic and video at WPP’s GroupM, added, “I wasn’t particularly surprised by this.” She credited the “democratization of the technology and the skill-set” with an “increasingly lower cost of entry.”
According to industry leaders, the issue is not whether the company can enter this potentially lucrative market, but whether it can truly stand out.
“Accenture has tremendous market knowledge of their business,” Warner said, but “not necessarily as it relates to media buying and activation.”
Fellow player or direct competitor?
Still, quite a few executives on the agency side saw the news as a sign of Accenture infringing on their turf—a shot fired, as it were.
Their key argument centers on the idea that Accenture, which performs auditing services for hundreds of clients, has created a potential conflict of interest by giving itself the power to recommend this new programmatic offering to the same companies.
“The audit arm in theory could be in the position of having to ‘independently’ assess the performance of its own programmatic advice,” said Denford.
As one agency leader who spoke to Adweek on condition of anonymity put it, “Their position has been ‘agencies are not neutral, clients need a neutral third party to evaluate how their agencies operate.’ They are now an agency and will be under the same supply chain scrutiny of all agencies.”
The 4A’s and MediaCom chairman and CEO Stephen Allan were even more blunt in their critiques.
In a LinkedIn post, Allan warned clients to be “very wary” of the “troubling” development, writing, “You can’t ask for money to pay the piper and then play the tune yourself.” The 4A’s described the “unacceptable” new offering as “a clear conflict of interest, positioning Accenture to engage in media trading and then also be responsible for auditing the trading results and processes of its competitors.” It then called for revisions to media auditing guidelines and asked agencies to reconsider participating in any reviews overseen by Accenture.
For its part, Accenture sees no such friction.
We’re all in this together
Accenture Interactive global lead of programmatic services Scott Tieman told Adweek that concerns about a conflict of interest within the “very large” and multilayered organization are misplaced. “The part of the organization we are in—the Interactive and Marketing team—is completely segregated from auditing, which sits in our procurement division,” he said, adding, “these are not marketers.”
“We have strict policies in place to restrict how [client] data can be used,” he continued, stating that the divisions never share data and that “we would never be in a position to audit our own work” on the marketing side.
He also clarified that, when the organization does audit itself, it never does so in conjunction with unrelated services like ad buying.
Allan, like several other media agency leaders, anticipated such a response and wrote that, while he welcomes competition from Accenture, its new sales business is “frankly incompatible” with its more traditional role as an auditor. Others predicted that Accenture will eventually dial down or even eliminate those auditing services because, as Denford put it, they will “be far less lucrative in the long term than its new programmatic business.”