This is a landmark moment and a sensitive situation, and I don’t think anybody can comment exactly on the ongoing situation. But this may be the great reset that addresses all the problems everyone’s been talking about off the record for a long time. People have been calling for transparency in media buying for decades now. It is almost common knowledge that kickbacks and unethical practices do exist in the industry. This is the main reason we as Famous never got into media buying, because we didn’t want to get our hands dirty.
If the government is serious about cleaning up the industry, I know in the short term we will pay a heavy price, but in the long-term it will be for the good of the industry and will allow new players and independent agencies like us to also have a fair playing field in the media landscape. Today, GroupM controls more than 50% of the market, and even the rest is largely concentrated with the top 2-3 players, it’s impossible for a new player to enter the media buying space, even if they have the best talent, automatically putting them at a disadvantage when it comes to working with big clients.
For years, large agencies have thrived on media-buying dominance, leveraging scale to secure discounts and exclusive deals. But if these investigations dismantle or weaken that model, the industry’s competitive edge will shift from who can buy the most media at the best price to who can craft the smartest, most effective campaigns.
This could lead to:
– A rebirth of strategic creativity – With less emphasis on media arbitrage, agencies will have to win clients through innovation, storytelling, and measurable performance.
– The rise of agile, insight-driven agencies – Independent and boutique agencies that focus on data, audience psychology, and real-time adaptability could thrive.
– A redefinition of media value – Instead of just buying impressions, agencies might need to prove engagement, conversions, and ROI in new ways.
Essentially, this isn’t just about breaking up potential collusion—it’s about forcing agencies to prove their worth beyond bulk buying. The winners will be those who pivot quickly, embrace transparency, and double down on strategy rather than scale.
I myself used to think that these are just conspiracy theories until recently, I was part of a pitch with one of the big four agencies and I realised that they offered the client that if the client buys media with them, the creative services are free. Our pitch fell flat on its face because there is no way we could afford that, nor can any other creative agency in this industry. So I asked myself how they can afford creative and strategy talent for free. Creative talent is expensive, we all know that. And the simple answer is that media buying subsidises the creative cost. I dare any large digital agency to exist without media buying, they will shut down tomorrow.
If we continue like this, the industry will only get more and more concentrated, which we all know is a disservice to our clients, our talent and the ecosystem at large. So yes, I can’t speak to the specificity of these particular raids, but if they are working towards making the industry fair and more democratic at large, then it’s a step in the right direction.
Raj Kamble is the Founder and CCO of Famous Innovations. Views expressed are personal.