Two Independent Agencies Unite: Barkley and OKRP Join Forces
This collaboration forms a powerhouse 'big indie' agency aiming to address the unique obstacles confronted by independent firms in today's competitive agency environment.
Article Brief:
Independent agencies Barkley and OKRP have merged to become one of the largest independent agencies in the United States, the companies announced.
Barkley****OKRP, the newly merged agency, will now have over 650 employees and offices in major cities like Chicago, Denver, New York, Pittsburgh, and Kansas City, Missouri. Among its impressive list of clients are well-known brands like Metro by T-Mobile, Burger King, Planet Fitness, Motel 6, Premier Protein, and AMC.
This merger reflects a larger trend in the industry where independent agencies are either joining forces or being acquired by larger holding companies in order to access essential expertise and expand their operations.
Article Insight:
Barkley and OKRP’s merger highlights the difficulties that independent agencies encounter in today's business environment. Global networks are increasingly appealing to clients as marketing shifts towards digital platforms. In a statement, Barkley CEO Jeff King acknowledged the challenges faced in the industry.
Barkley****OKRP offers a unique alternative in a world dominated by choices between big holding companies and small independent agencies. They refer to their approach as 'big indie,' combining the best of both worlds. This merger not only establishes a strong platform today but also paves the way for future investments to enhance capabilities in various areas such as media, data, analytics, performance marketing, and technology.
The trend of smaller and mid-sized agencies being acquired by holding companies is evident. Stagwell, for example, has been actively acquiring creatively focused agencies like Left Field Labs, Tinsel, and Movers + Shakers. This trend reflects a growing importance of scale for survival, driven by the need for digital expertise that can be costly and time-consuming to develop independently.
Jay Pattisall, vice president and principal analyst at Forrester, expressed concerns about the impact of broader industry trends on small- to medium-sized agencies. He mentioned that in the past, there was a debate between the scale of holding company agencies and the culture of small independents, as both have their own advantages and disadvantages.
In the recent announcement, it was revealed that King will take on the role of CEO at Barkley****OKRP, with Tom O’Keefe transitioning to the position of creative chairman of the merged shop. The minority-owned subsidiary of OKRP, Putney, will remain a crucial part of the newly formed agency. The deal was facilitated by the Chicago-based private equity firm Keystone Capital.
Editor's P/S:
The merger of Barkley and OKRP to form Barkley****OKRP underscores the challenges faced by independent agencies in the rapidly evolving marketing landscape. Amidst the shift towards digital platforms, clients increasingly demand global networks and expertise that smaller agencies often struggle to provide. This merger represents a strategic move for both agencies to remain competitive and expand their offerings.
The "big indie" approach adopted by Barkley****OKRP aims to bridge the gap between the scale and resources of holding companies and the agility and creativity of independent agencies. By combining their strengths, they create a platform for innovation and future growth. However, the broader trend of smaller agencies being acquired by holding companies raises concerns about the impact on the industry's diversity and the preservation of independent voices. As agencies navigate these changing dynamics, it remains to be seen how the "big indie" model will fare in the face of competition from both large holding companies and nimble, specialized boutiques.
