Dive Brief:
- Sprint named Droga5 its new agency of record, replacing Deutsch without a review process, according to Adweek.
- Sprint VP of corporate communications David Tovar also confirmed that Droga5 will work with Omnicom’s Alma for Hispanic marketing.
- Sprint launched its own in-house production unit Yellow Fan Studios this year, and Droga5 will closely collaborate with that group, focusing on strategy, positioning and the overall brand experience.
Dive Insight:
Sprint’s announcement comes at a time when big brands have been shuffling or entirely dumping their AORs, with a trend toward bringing marketing activities — especially on the digital side — in-house. Traditional agencies have been slow to adapt to digital disruptions in the industry, and often have difficulty mitigating the slew of information pouring in across an increasingly fragmented media landscape.
On Wednesday, Warner Bros. named Dentsu’s Merkle its digital media agency, diverting responsibilities for the $250 million-plus account away from Omnicon (though Omnicon continues to handle the entertainment company's traditional channels). And last month, PepsiCo moved social media marketing completely in-house after putting AOR The Barbarian Group under review in September.
In-house production and management of content is often more cost-efficient, and can also better tap into the essence of what defines a brand — something that can be difficult for outside agencies. Companies like Marriott have seen not only creative success, but also new revenue sources from their in-house production efforts, and Sprint seems to be following suit with the greater focus on collaboration with Yellow Fan Studios.
