‘I have an order of extinction’: Mat Baxter on why the holdcos won’t be around in 5 years
Former global strategy and creative boss at IPG Mediabrands Mat Baxter believes the big agency holdcos will be dead within five years because they no longer fulfill a vital role.
Baxter made the comments on the Mumbrellacast, recorded live at SXSW Sydney (South by Southwest). Speaking with Abe Udy, Tim Burrowes and Cat McGinn, Baxter pulled apart the holdco model he said was primarily designed by WPP founder Sir Martin Sorrell, who as it happened had just delivered a SXSW Sydney keynote.
Baxter also laid out the order in which the holdcos would fold, beginning with the beleaguered global arm of Dentsu.
“The networks are facing an extremely difficult challenge,” Baxter said.
I think Mat is wrong.
The trouble with these daring and absolute statements is that they tend to come back to haunt you in the future when you are proven wrong by the passage of time
holdcos that are mostly still experiencing organic growth and representing billions in revenue and profit will be extinct in 5 years.
ok.
maybe smaller and replaced by tech and ‘indies’, but, not dead and buried.