Confusing and in decline: Howatson on holdco creative consolidation

Chris Howatson has called out the mass consolidation of advertising agencies sweeping the global holding company sector, describing it as a confusing strategy that could hamper long-term growth.

Speaking candidly to the Mumbrellacast, the founder of Howatson and Co said the approach focuses on merging creative brands that don’t scale, while media operations, where scale actually delivers efficiency, are the parts that make financial sense.

He added that holding companies may continue to make extreme margins on media through principal trading, but this will mask the declining value of their creative businesses as more top talent leaves for independent agencies.