Ad Agency Group Cheil Consolidates Operations in North America to Focus on Untapped Mid-Market Sector
Cheil Agency Network Launches to Offer Flexible, Agile Advertising Solutions
In a bid to shake up the advertising industry, the Cheil Agency Network (CAN) has been launched, uniting five independently operated agencies across North America. The consortium, which includes McKinney, Iris, Attention Arc, CYLNDR Studios, and Barbarian, aims to provide clients with a more flexible, agile alternative to traditional holding company models.
The Cheil Agency Network operates as a network rather than a classic holding company, with CEO Joe Maglio overseeing agency performance and integration. This structure allows each agency to retain its own identity, culture, and specialty, while sharing resources, intelligence, and research & development. Clients can engage with a single agency, multiple agencies, or a customized team across the network, benefiting from specialized expertise combined with collaborative power and AI-driven production capabilities.
Unlike traditional holding companies, CAN follows an "asset light" model, providing subject-matter experts and infrastructure support centrally, while leaving creative autonomy with each agency. This approach ensures that agencies can maintain their unique identities and creative freedom, while still benefiting from the advantages of a larger network, such as access to multiple disciplines and strategic resources.
The launch of CAN comes during a period of consolidation among traditional holding companies, with Omnicom preparing to swallow IPG. The scale of this acquisition is seen as significant by Maglio, potentially leaving "a lot of great talent out there that midsized networks" like CAN could hire.
CAN agencies will pitch together, share resources, and jointly invest in areas like AI development, integrated creative and media solutions, and brand research. The scale of the network allows it to offer the energy, flexibility, and personalized service typical of independent agencies, while also providing the advantages of holding companies.
For large clients seeking an alternative to the big networks, CAN offers a network of agencies that can move faster with less bureaucracy, providing access to all senior executives. The network has offices in Atlanta, Boston, Dallas, Durham, N.C., Irvington, N.Y., Los Angeles, New York City, Phoenix/Scottsdale, and Toronto.
Tim Jones is the chief financial officer, Sue Roche is the chief people officer, Bill Mattis is the managing director and head of network growth, and Lisa Hughes is the head of network operations for CAN. All agency leaders now report directly to Maglio.
The Cheil Agency Network aims to serve the underserved mid-market, but also believes it can address gaps on both ends of the client spectrum. Maglio stated that CAN may consider adding more agencies and capabilities to its network, as well as expanding geographically, based on client demand.
In conclusion, the Cheil Agency Network represents a new approach to advertising, offering clients the best of both worlds: the energy, flexibility, and personalized service of independent agencies, combined with the advantages of holding companies. This model aims to address industry shifts and structural disruption in advertising, providing a more agile and adaptable solution for clients.
- The advertising industry is experiencing change as the Cheil Agency Network (CAN) has been launched.
- CAN, a consortium of five North American agencies, aims to offer a more flexible and agile alternative to traditional models.
- Each agency within CAN retains its own identity, culture, and specialty, while sharing resources, intelligence, and research & development.
- The network structure allows clients to engage with a single agency, multiple agencies, or a customized team.
- CAN follows an "asset light" model, providing experts and infrastructure support centrally, while maintaining creative autonomy.
- Traditional holding companies, such as Omnicom, are undergoing consolidation, viewed as a significant development by CAN's CEO, Joe Maglio.
- CAN agencies collaborate, jointly invest in AI development, integrated creative and media solutions, and brand research.
- The network offers the energy, flexibility, and personalized service typical of independent agencies, along with the advantages of holding companies.
- Large clients seeking an alternative to the big networks can benefit from CAN's ability to move faster and less bureaucratically.
- CAN has offices in Atlanta, Boston, Dallas, Durham, N.C., Irvington, N.Y., Los Angeles, New York City, Phoenix/Scottsdale, and Toronto.
- Tim Jones serves as the chief financial officer, Sue Roche is the chief people officer, Bill Mattis is the managing director and head of network growth, and Lisa Hughes is the head of network operations for CAN.
- CAN aims to serve the mid-market, but also believes it can address gaps on both ends of the client spectrum.
- CEO Joe Maglio suggests that CAN may expand geographically or add more agencies and capabilities to its network based on client demand.
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