Does Accenture's Acquisition of Droga5 Help Gen Z?

Droga5, founded by David Droga in 2006, has become one of the largest and most well-known independent advertising agencies in the world.  Its last reported annual revenue was in 2017 and exceeded $200 million.  Earlier this month, Accenture Interactive announced it has reached a deal to acquire Droga5 in what researchers and executives are calling a game-changer for both the consulting and advertising industries.  Accenture Interactive is the experience agency known for empowering marketers to own their desired consumer experience from start to finish.  Generation Z is the fastest growing and most engaged consumer audience we have ever seen; therefore it is crucial for advertising agencies to be able to iterate their business models and creative strategies at a rate that meets the content demands of that young demographic group.  Additionally, consulting firms will need to increase the capabilities of their creative arm, and the acquisition of creative agencies could potentially be the solution for that.

Accenture Interactive's acquisition of Droga5 could be the model that advertising agencies follow moving forward to increase market reach, content production and user experience capabilities.  Many consulting firms and technology companies believe that advertising agencies create beautiful content, but they don't do a great job using data analytics and technology systems to increase the amount of value they can give to their clients.  Although Accenture and Droga5 might be putting an end to this debate, it will be interesting to see how Droga5's creativity will continue to flourish under the leadership and direction of its new owner.

"We're working with clients to reinvent how consumers buy their particular products and services," says Brian Whipple, the Chief Executive Officer of Accenture Interactive.  "We expect to have an Uber-like, Amazon-like experience when we go to a restaurant or go to a retail store or when we order products online."  Generation Z has different expectations for their consumer experiences when dealing with brands that are much different from those of their parents.  Generation Z grew up with free two-day shipping and on-demand taxi services that made them never have to experience brands in traditional ways.  Therefore, this acquisition could potentially bring Generation Z the consumer experience it truly wants with its favorite brands.

There has been a bit of push back regarding this acquisition since many consultants don't understand the creative process the way traditional agencies do.  But Whipple disagrees.  When talking with The New York Times, he said, "Accenture Interactive has its own culture that is really, in no way, consulting-like, but I will say if it were to have elements of that, I think that's a good thing.  Its offices aren't full of people in suits and ties talking about financials."  I'm not sure if stressing the fact that their consultants don't wear suits is a reasonable response to the reporter's concern, rather than focusing on the types of human interactions and experiences that take place in consulting firms rather than advertising agencies.  In advertising agencies, the company culture is impacted by not only the tasks being accomplished, but by the types of people completing the tasks. Content creators and visionaries often need the freedom to step outside of corporate environments to ideate and create content for clients, whereas consultants and business executives are often required to focus on strategic objectives and sales-oriented goals to make more money for clients.

David Droga understands the necessity for agencies and consultants to begin working together to exceed client expectations and fulfill impactful marketing objectives.  Too many brand marketers and advertising agencies are getting off the hook for stellar content with minimal results.  Great looking content is not enough if consumers are not engaging.

"You can have the best advertising out there, but if the e-commerce is not good or the relationship with the customer and the experience isn't great, then that's irrelevant,">

Kelsey Davis

MediaVillage columnist Kelsey "Kels" Davis, is cofounder and chief executive officer of CLLCTVE, an agency that develops collegiate creatives, in partnership with universities across the country, to develop creative solutions for brands looking to … read more