Agencies hold consumer behavior data accumulated over decades. This historical understanding of attribution and targeting isn’t replicated by AI tools alone.
The Data Moat:
This capability is based on consumer behavior data dating back to the 1980s when direct mail campaigns were dominant.
Morningstar’s Mark Giarelli:
“Ad agencies are quite good at understanding a variety of characteristics. They know where we are, what we’re thinking to some degree, and they’re able to tailor a marketing message based on that.”
Why Historical Data Matters:
Attribution patterns — What actually drives purchases across channels
Behavioral cycles — How consumer behavior changes over time
Cross-channel insights — What TV does to search, what search does to purchase
Category expertise — Deep knowledge of specific verticals
The Strategic Acquisitions:
Acxiom — Acquired by IPG, now part of Omnicom
Epsilon — Acquired by Publicis
Lotame — Acquired by Publicis
These first-party data assets represent defensible competitive advantages that AI tools alone can’t replicate.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
