Trends in Ad Production: Navigating Fragmentation, Consolidation, and Technological Innovation
The advertising production landscape is evolving rapidly. Brands, agencies, and production companies are navigating new challenges, from balancing the need for cost-effective production to maintaining creative excellence. When adding generational AI to the mix, we must take note.
Several critical trends reshaping how production is managed are at the heart of this evolution, and marketing procurement will need to think outside the box to drive and capture efficiencies and ensure that brand advertising does not merge into one bland mix of AI, consolidation, and lack of talent.
To better understand the evolution in advertising production, Christine Moore of RAUS Global (yours truly) discussed the topic with Jillian Gibbs, Founder and Global CEO of APR (Advertising Production Resources) and author of the book The Marketer’s Guide to Creative Production.
Our discussion led to six high-impact trends to be aware of, manage, and embrace.
1. The Fragmentation vs. Consolidation Debate
One of the most significant discussions in ad production is whether brands should consolidate their production efforts or embrace a more fragmented approach with diverse suppliers. In recent years, many holding companies and agency-led management consulting firms have encouraged marketers to consolidate their production operations under a single umbrella, promising simplicity and cost savings. Recently, Omnicom publicly announced a new practice area that will bring together Omnicom’s global production capabilities. Omnicom Production will encompass Omnicom Studios, eg+, Designory, Mother Tongue, Link9, and the production departments currently housed within the company’s creative networks and agencies. Sergio Lopez, one of the industry's most progressive and awarded creative production leaders, will lead the new entity as CEO.
However, consolidation may not be the best solution for brands looking to maintain creative quality. “Consolidation often leads to the dilution of creative output as production becomes more standardized and less tailored to the unique needs of individual campaigns”, says APR CEO Jillian Gibbs. In contrast, fragmentation — working with multiple specialized vendors — will foster creativity and innovation by bringing in various perspectives and expertise.
According to industry experts, the key is finding a balance. While consolidation might work for post-production tasks such as resizing, adaptation, transcreation, and content origination, in areas where true creative talent is needed, we should drive a fragmented environment. By engaging with diverse production companies and agencies, brands can ensure they nurture top-tier creative talent, ultimately leading to better outcomes. By working with diverse players, brands ensure their unique brand values and style come through in all ad production.
Jillian says, “The diversity of vendors or suppliers, whether agency or production, breeds better creativity. Competition pushes these teams to deliver their best work.” This belief underscores the importance of maintaining a variety of suppliers to keep creative standards high.
2. The Rise of Strategic Alliances and Procurement’s Role
Another significant trend in ad production is the increasing role of procurement in the creative process. Traditionally seen as a back-office function, procurement is now a key player in how agencies and brands manage their production efforts. Strategic alliances between procurement experts and agencies are becoming more common. These partnerships enable brands to navigate complex vendor relationships, ensuring they get the best possible value without compromising quality.
Strategic alliances also help address the growing need for specialized procurement expertise within marketing organizations. Many companies are realizing that more than traditional procurement models may be required for the unique demands of ad production, leading to the creation of dedicated procurement divisions or alliances with external experts. This allows for more effective management of vendor relationships and better alignment between creative and business objectives.
Christine says, “We need a procurement division to manage these relationships and ensure we get the best work from our suppliers. It’s not just about cutting costs; it’s about making sure that the work we produce meets the high standards our clients expect.”
3. Flexibility Within a Framework: Managing Complexity
The complexity of managing multiple vendors is often cited as a reason for consolidation. Brands and agencies worry that working with a fragmented group of suppliers will lead to inefficiencies and difficulties in managing projects. However, Jillian argues that flexibility within a structured framework can overcome these challenges.
A well-designed framework allows brands to engage with a variety of specialized vendors while still maintaining control over the production process. This approach provides the benefits of fragmentation — such as increased creativity and innovation — while mitigating the risks of inefficiency. For example, Jillian mentions the concept of “Agency Management 3.0,” which involves vetting and engaging agencies and production companies to maximize their potential while minimizing complexity.
This framework-based approach is fundamental in today’s fast-paced advertising environment, where brands must be agile and responsive to changing market conditions. As Christine notes, “Speed to market is critical, but that doesn’t mean we have to sacrifice quality. With the right systems, we can work with various partners and still deliver on time and within budget.”
4. AI and Technology: Revolutionizing Production
Another trend gaining traction (understatement of the year) is integrating artificial intelligence (AI) and other technological advancements into ad production. While AI has the potential to streamline certain aspects of production, there is a growing recognition that it cannot replace the creative human touch that is essential for producing high-quality content.
Christine expresses her concerns about the overreliance on technology, especially in areas like creative direction and production management. “AI can help with tasks like resizing or adapting content, but it can’t replace the creativity and expertise that comes from working with talented directors, editors, and production teams,” she says.
Generative AI is already drastically changing the roles of certain professionals in the industry. Still, rather than replacing jobs, it will create new opportunities for those who can leverage technology to enhance their creative output. Jillian notes, “AI is a tool, not a replacement for talent. It has already changed how we work, but it won’t take over the jobs of the best creatives.”
This balanced view of AI reflects the broader industry sentiment: while technology can enhance efficiency and scalability, it should not be seen as a substitute for the creativity and skill that make ad production genuinely exceptional.
5. The Importance of Nurturing Creative Talent
One of the recurring themes in Jillian and my discussion is the importance of nurturing creative talent within the production ecosystem. Independent production companies, in particular, play a crucial role in developing the next generation of creative professionals, from directors to editors to cinematographers. These companies provide a space for emerging talent to thrive, offering opportunities for experimentation and innovation that might not be possible within larger, consolidated organizations.
However, there is a growing concern that the trend toward consolidation could stifle this creativity. By bringing more production work in-house, holding companies risk cutting off the industry's lifeblood—the independent creators who push the boundaries of what’s possible in advertising. None of us want to see watered-down commercials where you cannot distinguish one brand from another. We will continue to look for unicorns in the ads we consume daily.
Jillian highlights the importance of maintaining a diverse pool of creative suppliers: “We need to support these independent production companies because they are the ones nurturing the talent that will drive the future of our industry. Consolidation might save money in the short term, but it comes at the cost of creative excellence.”
6. Sustainability and Ethical Production Practices
As sustainability becomes a higher priority for brands and consumers alike, ad production is also evolving to meet these demands. There is an increasing focus on sustainable production practices, from reducing carbon footprints during shoots to ensuring that the materials used in set construction are environmentally friendly.
Brands are now looking for production partners who can demonstrate a commitment to sustainability, which is becoming a key factor in vendor selection. In addition to sustainability, ethical production practices — such as ensuring fair labor standards and promoting diversity and inclusion in hiring — are also gaining prominence.
Christine and Jillian emphasize the importance of aligning production practices with the values of both brands and consumers. “It’s not enough to produce great creative work; we also need to make sure that the way we produce it reflects the values of our clients and their customers,” Christine says.
The Future of Ad Production
As we look ahead, the future of ad production will be shaped by a combination of technological innovation, evolving procurement strategies, and a continued focus on creative excellence. While consolidation may offer short-term benefits in terms of cost savings and simplicity, the industry's long-term success will depend on maintaining a fragmented, diverse ecosystem that nurtures talent and fosters creativity.
Ultimately, the brands that succeed in this environment will embrace flexibility, leverage technology responsibly, and build strong relationships with various production partners. By doing so, they can continue to deliver high-quality, innovative work that resonates with audiences and drives business success.
