Over the past year, a fresh wave of mergers and acquisitions has raised new questions: What defines an agency's brand in today's market? And do agency brands still matter?

A recent article from Digiday suggests that as holding companies combine more agencies, "agency brands seem to matter less than they once did." Curiously, its author, Kristina Monllos, seems to equate the loss of legacy agency names with a loss of agency brand.

To support that point, she provides examples of pre and post-merger agency names and cites Forrester's Jay Pattisall, who says, "Marketers care more about marketing solutions than they do about the names of the providers that help develop them."

But an agency brand is so much more than a name. Just as it's more than a logo, a set of fonts and hex codes, and even a unifying story.

The Breadth of an Agency Brand

Critics of the Digiday article agree that equating an agency's brand with its name misses the mark. They insist on the importance of a deeper brand identity, as reflected in this LinkedIn post from Digitas North America's John Long. Ultimately, people value brands — whether cars, coffee, or agencies — not for their names but for what they represent.

The essence of an agency's brand lies in its history, culture of creativity, track record of innovation, and effectiveness. It's woven from reputation and relationships. And it's what gives clients confidence in choosing an agency.

These elements define an agency's worth, whether established independently or inherited from a predecessor entity. Post-M&A, agencies must find new ways to articulate these qualities for their continued success.

The Value of Agency Brands Amid Rising Consolidation

In 1986, a New York Times piece warned of "ad agency mergers changing the business." And M&A has made headlines across adland since. Consolidation's ebb and flow has become a reliable part of the landscape. Each surge brings renewed scrutiny of how agencies represent themselves and what it means for clients. 

Is it possible for M&A to deteriorate an agency's brand? Absolutely. But let's not confuse deterioration with destruction.

If agency brands are on the way out, why are so many agencies investing in them? Lindsay Rittenhouse and Brian Bonilla at AdAge recently highlighted the rise of agency chief marketing officers and chief brand officers.

This new breed of agency brand leaders will steer their agencies by blending historical wisdom with responses to modern challenges, safeguarding identity, and ensuring values remain vibrant and relevant. Their strategic role touches every corner of an agency, from driving new business to cultivating culture. And they are at the forefront of branding's next evolution as a crucial, multifaceted discipline. 

So much for M&A signaling the "waning importance" of agency brands. Agencies aren't tossing brands; they're just leveling up their approach. In this light, it seems the importance of agency brands is only growing.

Name Changes Don't Signal the End of Agency Brands

A new name doesn't mean that agency brands no longer matter. 

Can agency brand equity transfer across name changes? Why wouldn't it? There are endless examples of agencies thriving regardless of their names — sometimes even in spite of them.

Look at the number of successful agencies with unexpected names. 72andSunny and Strawberry Frog thrive on the strength of their work and partnerships, not their names. And what about all the agencies known by their "initial salads"? How often do people confuse BBDO with DDB? Both agencies still win based on their results and relationships.

Additionally, individuals and organizations carry their work experience and relationships with them. It seems unimaginable that a newly rebranded VML (the impetus for Monllos' article) won't enjoy the historic brand equity of Wunderman Thompson and VMLY&R. 

Agency Brands Are a Bridge to New Business

Agency brand plays a crucial role in business development. Agency brands are part of how we create connections with and establish relevance for prospects. That's significant because agency brand, while of the agency, is not just about the agency.

At TDP, we emphasize a compelling brand story and clear positioning to fuel the pipeline. These are not just elements of nice-to-have marketing collateral; they are foundational to attracting prospects and initiating meaningful engagement. Your strategic narrative is vital for building trust, showcasing unique capabilities, and differentiating from the competition. 

In this crowded industry, where many agencies offer similar services, a distinct brand identity is a signal that draws clients in. It helps convey not just what your agency does, but how it thinks and what it stands for. This can be the deciding factor for clients seeking partners who are a cultural fit. Do you make prospects want to be your partner? Do you inspire them to be part of what you're doing?

Many decision-makers also turn to online research when short-listing partners. Your agency's digital footprint reflects your agency's brand, too. Across your website, social media and other assets, the story you tell shapes how prospects perceive your agency. Think of this footprint as one big case study, illustrating your ability to make a prospect's brand look good.

Capitalizing on Opportunities for Your Agency Brand

In another AdAge article, Bonilla and Rittenhouse emphasize that marketing your agency brand is "more important than ever." Amid a shrinking pool of available work and generally unfavorable new business conditions, agencies are creating more content to express their personalities and points of view. This is all to grab the attention of CMOs, who "generally have a low awareness of agency brands," according to Matt Ryan of Roth Ryan Hayes.

Bonilla and Rittenhouse also cite Omid Farhang of Majority, who says (of the investment in his agency's podcast), "One of the best ways to show clients we can be trusted with their valuable brands is to build a valuable brand of our own." 

Farhang's point is spot on. He goes on to note that his efforts succeed where others don't because he focuses on what's in it for the audience. This is worth considering because agencies often get 'lost in the sauce' of internal voices when working on their brands.

An agency brand doesn't matter if it fails to deliver what prospects need and want. Its reflections must be relevant to its audience. That's true whether we're talking about website copy, a pitch deck, or thought leadership. It typically requires pressure-testing a brand's viability with unbiased external parties.

Parting Thoughts

The difference between a strong agency brand and a weak one is not M&A. Consolidation is part of advertising's inevitable evolution. This is not an industry that stands still, and there's no reason that agency brands should.

It's not a bad thing. From a new business perspective, an agency's next iteration can motivate prospects to take another look and reconsider them — with an infusion of new talent, work experience, and capabilities. We want that opportunity!

There will always be agency names and agency brands, and they will always have the potential for value (yes, even the boring and kind of weird ones). Realizing that value starts with your ability to translate your brand promise and inspire confidence that you can solve prospects' problems. Whatever you're calling yourself this week.

Read more:

• The New Business Consequences of Your Agency’s Name
• How To Get More New Business By Talking About Solving Client Problems
• How An Agency Brand Audit Can Supercharge New Business
• What is a Good Prospect Experience, and Why Do Agencies Need It?
  
  

Image credits: Photo by Marek Piwnicki on Unsplash; Photo by Aleksandr Barsukov on Unsplash