Pros and Cons of Using a Holding Company for TV and CTV Advertising
A holding company, also known as a holdco, is a parent company that owns and manages a portfolio of subsidiary businesses. In the advertising industry, holding companies often own several agencies that specialize in different areas of advertising such as media buying, creative, and digital. These agencies can operate independently or work together to provide a full-service solution to clients.
Holding companies have become increasingly popular in recent years, as they offer brands the ability to access a wide range of services and expertise under one roof. However, it's important for brands to understand the pros and cons of using a holdco for TV and CTV advertising before making a decision.
Pros of Using a Holdco for TV and CTV Advertising
One of the main advantages of using a holdco for linear TV and connected TV (CTV) advertising is the ability to access a wide range of services and expertise under one roof. Holdcos typically have several agencies that specialize in different areas of advertising, which can save brands time and resources by not having to work with multiple agencies. This can lead to a more cohesive and integrated approach to advertising, with different agencies working together to achieve the same goals.
Additionally, holdcos often have established relationships and buying power with media companies that can lead to better rates and access to premium inventory. This can be especially beneficial for brands that want to run large-scale TV and CTV campaigns, as the holdco's buying power can help secure better deals and placements.
Cons of Using a Holdco for TV and CTV Advertising
While holdcos can offer a wide range of services, they may not always be the best fit for every brand. One of the main disadvantages of using a holdco is that brands may not receive the same level of attention and customization as they would from a smaller, specialized agency. This is because holdcos typically have a larger client base, which can lead to less personalized service and attention.
Additionally, holdcos may also have a more rigid structure and decision-making process, which can slow down the execution of campaigns. This can be an issue for brands that need to move quickly and make decisions on the fly.
Finding the Right Fit
When considering whether or not to use a holdco for TV and CTV advertising, it's important to weigh the pros and cons and determine if it's the best fit for your brand. It's also important to evaluate the holdco's expertise and experience in TV and CTV advertising and ensure that the holdco's agencies have the necessary resources and capabilities to deliver the results you are looking for.
You should also consider the size of your brand and the type of campaigns you want to run. A large brand that wants to run large-scale TV and CTV campaigns may benefit from a holdco's buying power and access to premium inventory. However, a smaller brand that wants a more personalized approach may be better off working with a smaller, specialized agency.
In summary, holding company advertising agencies can offer a range of services and expertise under one roof, as well as access to better rates and premium inventory. However, brands may not always receive the same level of attention and customization, and the decision-making process may be more rigid. Brands should evaluate the holdco's expertise and experience in TV and CTV advertising, consider the size of the brand and type of campaigns, and ensure the right fit before making a decision.
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