Chris Howatson has called out the mass consolidation of advertising agencies sweeping the global holding company sector, describing it as a confusing strategy that could hamper long-term growth.

Speaking to the Mumbrellacast, the founder of Howatson and Co said the approach focuses on merging creative brands that don’t scale, while media operations, where scale actually delivers efficiency, are the parts that make financial sense.

He added that holding companies may continue to make extreme margins on media through principal trading, but this will mask the declining value of their creative businesses as more top talent leaves for independent agencies.

Howatson’s comments come as the agency marks its five-year anniversary, with the founder outlining his long-term commitment to remaining independent, keeping headcount under 200 even at the cost of taking on new clients, and explaining why he believes the industry is entering a creative renaissance despite consolidation and AI disruption.