Frank de Wit: why are social agencies now making commercials?
We’re observing an interesting shift in the advertising industry. Social agencies are taking over, yet no one is talking about it. The truth is, traditional agencies can no longer meet the needs of modern brands alone, and it’s time we acknowledge this transformation.
Television viewing is on the decline. Nothing new. We’ve seen this trend for a while now, but each year it becomes increasingly clear that social media has captivated the attention of consumers. People seek efficient and personalized experiences, and TV is no longer dominating as the primary source of entertainment and information. This shift is reshaping the industry and agency landscape significantly.
According to Warc’s “Social Media Reaches New Peaks” report, social media has now become the largest channel globally in terms of ad spend. This trend is not just a blip; it’s a fundamental shift. So, let’s talk about it.
Brands and CMOs are increasingly looking for agencies that can manage all types of marketing across various platforms, including influencer marketing, YouTube content, and online commercials. This demands expertise in content creation, algorithms, and platform-specific media buying. These elements are crucial for engaging the broad audience that TV once reached. Brands today need a partner who can take one overarching idea or concept and efficiently apply it across multiple platforms. This is the direction we are heading as an industry.
Why is this happening? Partly because brand discovery via social media is overtaking search engines and TV ads. Enter the era of social (video) search.
Think about it: how often do you find yourself scrolling through Instagram or TikTok for recommendations on the best local spots, cleaning tips, or new products? Gen Z has pioneered this behavior, but it’s spreading. Forbes recently highlighted that a quarter of people discover brands daily on social media. This is a broader change in consumer behaviour that includes older generations as well. Brands that quickly adapt to this shift have a significant competitive advantage.
Social agencies are thriving because they understand these nuances. They create content that isn’t just seen but engages and converts. They’re not just repurposing TV commercials for social media, but creating online-first commercials that are designed specifically for digital platforms. Traditional agencies, with their heavy focus on TV and mass media, often miss the mark here. They haven’t adapted to the platform-specific needs and behaviour of today’s digital-first audiences.
This is why social agencies are on the rise, or why many agencies are leaning more and more towards a social label. They are taking on roles traditionally filled by conventional firms because brands seek partners who can navigate a new complex digital landscape, often with limited budgets. Social agencies are reinventing what advertising can be, leading with an online-first approach that better suits the needs of today’s consumers.
It’s time for the industry to recognize this shift and adapt accordingly. Why are social agencies making commercials? Because they’re redefining what advertising can be in the digital age.
Frank de Wit is managing director of team5pm.
