ABSTRACT
Recognizing that the marketplace was changing and that advertising was fast losing its golden halo, ad agencies went on a merger and acquisition binge in the late 1970s and throughout the 1980s in an attempt to offer their clients more than just advertising. Unfortunately, most of these marriages with public relations, sales promotion, and direct response agencies were based on a physical (i.e., financial) attraction, not on love and respect for their new partners’ communication skills. The acquisitions were driven by the attempt to not lose the money that clients were transferring out of advertising into the other communication areas. In addition, these agencies had little understanding of the integrated marketing communication concept. They continued to have tunnel vision, responding to most situations with the attitude of “advertising is the answer, now what’s the problem.” The advertising agencies were either unwilling or unable to fully assimilate their newly acquired communication functions, in most cases allowing the newly acquired agencies to remain independent profit centers. Consequently, ad agency clients, for the most part, saw little benefit in ending their relationships with their current public relations, sales promotion, and direct response agencies. Advertising agencies are still searching for the best way to incorporate the concept and practice of integrated marketing communication (IMC).
