Dive Brief:

• Accenture's “new” business sections, including Accenture Interactive, Accenture Applied Intelligence and Industry X grew more than 20% over the past 12 months, according to a report from The Drum citing comments by Accenture executives during a conference call with analysts to discuss the private company's earnings.
• Accenture generated more than $7.8 billion in revenue from marketing services, putting Accenture Interactive at about the same size as Interpublic, the fourth-largest ad group worldwide, Campaign US reported. Accenture’s total revenue increased 10.5% to $40 billion for the year ending in August 2018.
• The growth is despite Accenture scaling back on mergers and acquisitions. M&A spend dropped by about two-thirds, but Accenture spent $658 million for the year on acquisitions including Irish creative agency Rothco and German visual effects firm Mackevision. For the year ending in August 2017, the company spent $1.7 billion on M&A. 

Dive Insight:

Accenture Interactive’s growth shows how consultancies are continuing to move into marketing services and redrawing the marketing landscape, which is posing new challenges for traditional ad agencies. Consultancies have been seen by some as better able to respond to digital disruption and the evolving needs of brands and consumers, areas where marketers have expressed their frustration with agencies. 

Accenture in May announced a new unit focused on programmatic services, going after another weak spot for longstanding agencies around implementing new technology and helping marketers with data-focused campaigns. Accenture said the unit would focus on programmatic in-housing and media planning and buying to help marketers build their own in-house programmatic systems and provide full-service campaigns. More marketers have embraced programmatic to scale and automate large digital campaigns, but many have been frustrated working with third-parties. 

Over the years, Accenture has acquired a number of creative and digital companies to expand its offerings. One of its most recent acquisitions, Meredith Xcelerated Marketing, was an effort to strengthen its creative services, data-led marketing, content strategy and digital marketing capabilities. Accenture Interactive’s mergers and acquisitions slowing over the most recent 12 months, compared to the previous year, signals that the company is seeking the right opportunities to help fuel its growth. Accenture reportedly has $1.5 billion for acquisitions over the next 12 months.