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Photo: Ben Hider/Getty Images

Accenture Interactive, the digital marketing arm of international consulting firm Accenture, announced on Wednesday that it is acquiring acclaimed advertising creative agency Droga5. Deal terms weren't disclosed, but Accenture Interactive says Droga5 is its biggest acquisition in 10 years.

Why it matters: The acquisition will help Accenture Interactive expand its advertising creative business, specifically around "experiential marketing," which includes things like custom events, executions and partnerships that help people experience a brand in a more intimate way, as opposed to just seeing an ad on TV.

Details: With the deal, Accenture Interactive has bought out a 49% stake in the company — previously owned by Endeavor, one of Hollywood's biggest talent agencies, which is reportedly about to file confidential paperwork for an IPO.

"What this is really about is the evolution of the experience business. We are focused on reinventing stale experiences. There are many experiences out there where creativity helps clients. That is where Droga5 comes in."
— Accenture Interactive CEO Brian Whipple

From a business perspective, the companies will not combine offices, and no synergies in the traditional sense (layoffs, etc.) are anticipated. Accenture Interactive will acquire Droga5's hundreds of employees from offices in the U.S. and Europe.

  • The Droga5 team will continue to pitch the types of communications and advertising work that it is known for, like its award-winning "Truth" ad campaign for the New York Times.
  • The focus is really about the two companies leveraging each other's strengths — Accenture in digital experiences and Droga5 in creative — to create experiences that marketers will want to pay for.
"A consumer can't discern whether something comes out of a marketing agency or a consultancy. They just want their experience with a product or technology to be seamless. This partnership will help us do that for them."
— David Droga, founder and creative chairman of Droga5

The big picture: Ad agencies have in the past pushed back on Accenture's moves into ad buying and placement. Consultancies like Accenture, PwC and others have begun to rival traditional agencies, in some cases, due to their technological capabilities. Accenture Interactive is different as it seeks to provide creative solutions for marketers, an area that most consultancies aren't as invested in.

Go deeper: Consulting firms put the squeeze on traditional ad agencies

Go deeper

Axios-Ipsos poll: Trust in federal coronavirus response surges

Data: Axios/Ipsos survey; Chart: Danielle Alberti/Axios

Trust surged in the federal government since President Biden's inauguration when it comes to COVID-19 — but that's almost entirely because of Democrats gaining confidence, according to the latest installment of the Axios/Ipsos Coronavirus Index.

The big picture: Americans reported the biggest improvement in their mental and emotional health since our survey began last March, and the highest trust levels since April about the federal government providing them accurate virus information and looking out for their best interests.

7 hours ago - Politics & Policy

McConnell drops filibuster demand, paving way for power-sharing deal

Senate Majority Leader Chuck Schumer (R) and Minority Leader Mitch McConnell attend a joint session of Congress. Photo: Olivier Douliery/AFP via Getty Images

Senate Minority Leader Mitch McConnell has abandoned his demand that Democrats state, in writing, that they would not abandon the legislative filibuster.

Between the lines: McConnell was never going to agree to a 50-50 power sharing deal without putting up a fight over keeping the 60-vote threshold. But the minority leader ultimately caved after it became clear that delaying the organizing resolution was no longer feasible.

8 hours ago - Technology

Scoop: Google won't donate to members of Congress who voted against election results

Sen. Ted Cruz led the group of Republicans who opposed certifying the results. Photo: Stefani Reynolds/Pool/AFP via Getty Images

Google will not make contributions from its political action committee this cycle to any member of Congress who voted against certifying the results of the presidential election, following the deadly Capitol riot.

Why it matters: Several major businesses paused or pulled political donations following the events of Jan. 6, when pro-Trump rioters, riled up by former President Trump, stormed the Capitol on the day it was to certify the election results.