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By Adam Lashinsky

This article first appeared in Data Sheet, Fortune’s daily newsletter on the top tech news. To get it delivered daily to your in-box, sign up here.

Never has the notion of swimming outside one’s lane been so exciting.

Accenture, the spawn of Arthur Andersen turned consultant turned marketing guru, is buying Droga5, a buzzy advertising agency. Odd fit? Maybe. But consultants increasingly have been veering into the business of marketing. Clients that need IT strategies need marketing strategies that happen to be IT strategies these days.

Incidentally, the seller of nearly half of Droga5 is Endeavor, formerly known as WME and before that William Morris Endeavor. The point is that Endeavor at its core is a master lane switcher, a TV talent agency that bought a sports agency (IMG) and a stake in an ad business, too. Endeavor is staked by private-equity firm Silver Lake and has been rumored to be plotting an IPO. It bought the Droga5 stake for a reported $115 million in 2013. Selling out now for far more than that—terms weren’t divulged, but Droga5 is said to cooking with gas—would help pay down Endeavor’s debt before an offering.

The biggest metamorphosis expert in the land, of course, is Amazon, the cloud software enterprise that also sells books and a few million other things. It was the elephant in the room all week at Fortune’s Brainstorm Health conference in San Diego. Morgan Stanley investment banker Cheri Mowrey noted that Amazon (amzn, +0.13%) has been out slyly sucking up information throughout the healthcare industry and already has shown a bit of its strategy with the purchase of online pharmacy PillPack. Haven, the secretive joint venture Amazon has formed with J.P. Morgan and Berkshire Hathaway, isn’t a for-profit company—and it is scaring the daylights out of healthcare services companies anyway.

On a final note, please check out this wonderful piece in the Financial Times by onetime journalist and current Suecophile Michael Moritz. It’s about a Swedish newspaper group that has thrived not by splashing into someone else’s lane, but by getting smart about its own digital business while prudently continuing to print newspapers.

Feature Image Credit: A conversation about where the smart money is and how investors should bet on the newest tech in the health care space at Fortune’s Brainstorm Health 2019.

Stuart Isett for Fortune

By Adam Lashinsky

Sourced from FORTUNE

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KPMG Australia has become the latest management consultancy to launch a specialist marketing advisory team targeting chief marketing officers.

KPMG has appointed Carmen Bekker as a partner to launch its CMO advisory team, which is part of the firm’s customer, brand & marketing advisory business.

Bekker brings 20 years experience working on leading international brands in the UK, Europe and Australia. Her previous roles include management partner and European marketing director for J Walter Thomson London as well as business director at Saatchi & Saatchi in London and Sydney.

Bekker said her role was to help CMOs and brand leaders to grow their businesses by providing new perspectives and leveraging best international practice, however, she also plans to focus on championing diversity.

“CMOs and brand leaders have a huge responsibility to consistently deliver and innovate for their organisations in today’s rapidly changing environment. They face challenges from global trends as they navigate the new world, including media transparency, marketing spend accountability, and creating meaningful customer engagement.

“I will champion diversity within the wider industry with a focus on female leadership, and also on diversity in the work that brands create when marketing to customers. Australia has all the ingredients to be an innovative leader within the global marketing sector, and I look forward to playing a role in this at KPMG,” she added.

Bekker is the latest senior hire to join KPMG’s customer, brand & marketing advisory business, which launched in June following the firm’s acquisition of research company Acuity Research and Insights.

The division also includes former Google industry leader for mobile and new business development Lisa Bora, ex-Virgin Australia chief customer officer Mark Hassell and former Telstra GM of Business to Business IT Melanie Evans.

Paul Howes, partner in charge of KPMG’s customer, brand & marketing advisory, said the division had experienced “rapid growth” since launching. “Our practice has proven there is increasing demand for new approaches in Australia’s marketing landscape. The launch of a new CMO Advisory practice under Carmen will take our business to the next level as we move into 2018.”

Consultancy companies have been ramping up their marketing divisions across APAC this year. PwC has appointed a host of former advertising executives to its CMO advisory including former Network Ten executive general manager Russel Howcroft who joined as chief creative officer in 2016. It also follows Accenture’s acquisition of creative hotshop The Monkeys earlier this year.

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The world’s largest agency group, WPP, has dismissed the apparent threat from consultancies such as Accenture and Deloitte which have begun to acquire creative shops to grow into the advertising and design sectors to service their clients.

While releasing its latest financial results, the WPP statement addressed the changing nature of the advertising market, highlighting three ways in which the industry is changing. On the rise of tech and search platforms such as Google (understood to now be WPP’s largest partner), Facebook and Amazon, it said that the former two companies had, in recent times, become “friendlier” as they have become key media partners for the network that is an important client to each entity. Another change the report spotlighted was client consolidation by major companies such as Unilever and P&G, probably the most important change taking place at the moment, forcing consolidation within the networks and cost cutting to match the lower budget spend from each FMCG conglomerate.

The third change was with the consultancies moving into the space by acquiring “small agencies” and talent. The report stated that only “two or three” such businesses were currently capable of competing.

It continued: “Most agencies report, including ourselves, that even when they do compete directly with the consultancies on digital projects, the win/loss records are consistently strong, particularly given the continuing importance of the creative dimension for success.”

It then continued to question whether such companies were capable of buying a culture of creativity and claimed that the press had “wildly” overestimated their digital marketing revenue in comparison to the holding companies and agencies.

“Where the consultancies may have made some inroads is their focus not so much on the digital area, but more importantly on client concerns about cost. Very few CEOs will resist the suggestion that they may be overspending and the promise of an audit or review that will only cost a proportion of any cost savings generated or a contingency fee,” the report said. “So, it may well be, that consultant activity is having some impact, not so much in the digital area, but more because of an emphasis on cost containment.”

WPP reported an increase in revenue of 1.1% at £3.649bn for its third quarter and reported revenue up 8.9% at £11.053bn for the nine month period overall.

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Sourced from THEDRUM