Holding companies vs. independent agencies: who beat who in 2023?
In the never-ending struggle between the holding company model and the independent’s way of the agency business, it appears the independent side came out just slightly ahead this year, thanks to the ability to stay nimble and not be bogged down by large amounts of debt. But a still-uncertain economy leading into 2024 could hurt independents as much or more than their larger competitors.
That said, some holding companies appear to be faring a bit better than others, with Publicis growing its stock price over the year, Omnicom holding its own, while others like Dentsu, IPG and WPP are all suffering stock drops as they continue to reinvent their business structures and various operating units in search of better results. Then there’s the newer holdcos — Stagwell saw it stock drop a bit while S4 Capital’s slide was far more egregious.
Havas, meantime, could find itself cut loose from its ownership strings under Vivendi and set adrift to find its own stock value. What that means for the company remains to be seen, but based on the above results, it’s hard to be too optimistic.
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Source:: Digiday
