In the last two years, major companies are beginning to work closely with smaller digital marketing brands in the evolving areas of influencer marketing. The growing demand for user-generated content has served smaller agencies well. Larger brands are realizing that, with the massive rise of newer platforms, they need smaller, more flexible agencies to maintain their influence.
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Rapid consolidation of digital marketing as the major visibility medium, have also helped solidify this rule. Last year's major trend was the acquisition of more diminutive digital marketing agencies by big corporations who then utilize them to develop an in-house selling structure.
In 2020, of the two companies Sir Martin Sorrell’s snagged via his S4 brand of US-based agencies was Imagency which, before their acquisition, had staked a claim as one of the leading independent digital marketing agencies in the country.
Whenever a big brand decides to get their digital marketing strategy going, one thing is clear: Smaller agencies are benefiting in droves and the reasons are not far-fetched.
The last two years have seen a huge increase in the demands on digital marketing, and over the past year in particular it has become the only viable way to build visibility.
Smaller agencies are being favored to land clients because they would make up a critical percentage of revenue and further incentivize marketers to work doubly hard. The success of these agencies is inextricably tied to the success of their clients.
Jess Philips, CEO of The Social Standard, had to entertain offers for acquisition in 2020 and recently explained why smaller agencies seem to be having a field day to the detriment of the more established: “The best ideas always emanate from small teams who don't just study social media trends, they live & breathe them."
Agencies with a bloated overhead rarely possess this flexibility, nor as dedicated to projects, as smaller teams. A smaller team would readily take responsibility for a campaign’s direction and make changes when needed.
Jess attributes some of last year's success to their ability to keep track of new platforms like TikTok, Triller and Clubhouse while studying their demographic so as to offer clients the ability to develop very targeted campaigns.
Outside suppliers are the prudent path for businesses smaller than Martin Sorrell’s S4. Two of the obvious benefits of outsourcing during this era, per Bacancy CEO Chandresh Patel, is their guarantee of cost-effectiveness and access to a dedicated talent pool.
This unique period, and the immense need for powerful digital marketing that has followed, has caused an upheaval that presented brands with an opportunity to rethink their strategies and find the perfect fit that suits their brand vision whether it is as simple as ranking on Google or hitting record sales.
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