The last few weeks have seen the industry's big guns and a smaller player re-ignite debate on the industry's future and whether bigger is ultimately best for clients.
In one corner, M&C's Lord Maurice Saatchi weighed in with his observation that the big agency networks had attempted to squeeze out the smaller, independent operators by commoditising the creative process. His contention is that best practice systems had become virtually commoditised simply because most agencies operate with similar resources.
On the other hand, Sir Martin Sorrell of WPP dismisses the commoditisation trend, arguing that consolidation of the agency sector is directly attributable to cost-conscious clients driving the development forward. Indeed, the rise of the procurement office at client companies in buying creative services has put immense pressure on the cost structure of the agencies.
In this survival of the fittest - some would argue cheapest - scenario, it's crucial to have a consolidated back-end, research and production function to provide the services at a price cost-conscious clients are willing to pay.
That said, this is a creative business with ideas as its lifeblood. It's ideas that will help differentiate one agency from another. Yet, clients and certain quarters of the agency business freely admit that the industry's current score on generating the big, powerful ideas has been far from robust.
But is it fair to blame consolidation for the current state of play?
Theoretically, consolidation, with the reduction of back-end duplication, should free up resources to enable agencies to hire and nurture the best talent. Indeed, it's how agencies use these resources to hone their creative product and differentiate their offering from rivals that will matter in the long run. Looking around, it's fair to say that only a very small handful have training programmes in place to ensure new entrants are nurtured rather than dropped into a sink or swim scenario.
As for now, agencies are merely paying for the sins of the past when they tacked on free, value-added services such as strategic advice in order to land an advertising account. Is it any wonder then that the agencies' once mighty position as business partner has been reduced to a supplier, while management consultancies have moved in to fill the gap.
Clients have become accustomed to the freebies and it will take a while to wean them off this habit. Until then, agencies will need to walk the tightrope, balancing creativity and cost in a way that would allow them to offer a quality service without endangering the bottomline.