Crossmedia aims to localize in areas where holdcos are unable to reach, according to media buying briefing.
The landscape of agency mergers and acquisitions is experiencing significant developments, with the U.S. being a hotspot for this trend. However, there is also a noticeable drive towards global consolidation and scale-seeking. Major holding companies are not the only ones involved in this expansion – recent news of Publicis acquiring a Brazilian influencer marketing firm and Havas purchasing an Argentinian creative shop demonstrates this broader trend. The primary objective behind these acquisitions is to enhance services, attract new clients, and expand existing client work.
Growth strategies in the agency landscape can vary, and one approach that some agencies are adopting is to grow their network organically without acquiring agencies. Crossmedia, an independent media agency, is leveraging its “Worknet” strategy, which entails forming loose partnerships with agencies globally while maintaining a central services agreement. While Crossmedia already has strong business footholds in North America and Western Europe, its sights are set on establishing hubs in Asia Pacific, Latin America, and expanding further into the Middle East. Crossmedia’s co-founder and partner, Martin Albrecht, likened their approach to the United Nations, highlighting their collaborative model.
To facilitate their global expansion efforts, Crossmedia recently promoted its U.S. CEO and co-founder, Kamran Asghar, to the role of global CEO. This strategic move aims to streamline the agency’s structure and facilitate a unified approach towards global growth. Asghar emphasized that their goal is to compete for smaller global clients with holding companies while offering a personalized approach tailored to each client’s needs. Crossmedia operates in 120 countries through a network of agencies, allowing these entities to retain their independence rather than being fully acquired.
Crossmedia pursues three models in establishing global partnerships: wholly owned hubs in the U.S., London, and Germany, joint business partnerships in Canada, and potential investments in founder-led agencies worldwide. Asghar stressed the importance of preserving the independence of these agencies to ensure alignment based on shared values and mission, rather than just business structures. The agency has maintained a commitment to innovation and entrepreneurship, contrasting with what they perceive as an overemphasis on transactions and scale by holding companies.
The agency’s model revolves around centralized technology for data, media operations, and digital media performance combined with local expertise and insights for contextual activation of media buys. Crossmedia collaborates with a diverse range of independent media agencies, fostering relationships based on shared ideals and goals rather than purely transactional motives. This collaborative approach aims to harness the entrepreneurial spirit of agency partners to drive media innovation while minimizing bureaucratic constraints.
In essence, Crossmedia’s approach entails a delicate balance between centralized operational standards and localized expertise, emphasizing collaboration, innovation, and commitment among its network of agency partners. By prioritizing values and mission alignment over mere scale, the agency seeks to differentiate itself in a landscape dominated by larger holding companies. Through this hybrid model, Crossmedia aims to deliver tailored solutions to clients while fostering a collaborative and entrepreneurial agency network focused on driving media excellence.
