What's Happening?
Cheil North America has announced the formation of the Cheil Agency Network (CAN), consolidating five of its agencies—McKinney, Barbarian, Iris, Attention Arc, and CYLNDR Studios—under a single umbrella. This strategic move aims to provide mid-market brands with an alternative to both large holding companies and small independent agencies. Joe Maglio, CEO of McKinney and Barbarian, will lead CAN, which offers comprehensive support in finance, HR, operations, and growth. The network will focus on collaboration, resource sharing, and joint investments in areas such as AI development and integrated creative solutions. CAN's offices are located in major cities across North America, including New York, Los Angeles, and Toronto, facilitating efficient collaboration among agency teams.
Why It's Important?
The establishment of CAN represents a significant shift in the advertising industry, particularly for mid-market brands seeking agile and comprehensive solutions. By consolidating resources and expertise, CAN aims to bridge the gap between large networks and smaller independents, offering clients access to senior executives and diverse talent. This approach could disrupt traditional holding company models, providing faster, more tailored services without the bureaucratic overhead. The move also comes at a time when major holding companies are undergoing consolidation, potentially leaving room for mid-sized networks like CAN to attract top talent and expand their capabilities.
What's Next?
CAN plans to expand its network by adding more agencies and capabilities based on client demand. This could involve geographic expansion and the inclusion of additional services to better serve its clients. As the advertising landscape continues to evolve, CAN's approach may influence other agencies to adopt similar models, emphasizing collaboration and efficiency. The network's success will depend on its ability to deliver improved outcomes for clients, potentially setting a new standard in the industry.
