Accenture Song, the multi billion dollar advertising arm of the global consulting group, is being moved into a new business unit, Reinvention Services.
In the name of fuelling growth, Accenture from September 1 is bringing services including strategy, consulting, Song, technology and operations together into a single “integrated” business.
The change comes as Australian David Droga, the founder of creative shop Droga5, is about to stand down as CEO of Accenture Song and becomes vice chair of the global consultancy as a whole.
“Once we fully implement our new model, we will be able to bring more leading solutions faster and embed data and AI more easily into our solutions and delivery,” CEO Julie T. Spellman Sweet said when briefing analysts on the group’s third quarter earnings..
“We will also be able to help our people learn and apply AI more easily as this technology continues to evolve quickly.
“We will continue to manage our business through our geographic markets, the Americas, EMEA and APAC and go to market by industry.”
The changes will be made at the same time Ndidi Oteh, the head of Accenture Song's Americas business, takes over at Song from David Droga.
Droga, speaking last week at a function in Cannes, made his views on creativity and the advertising industry clear.
“The problem with most holding companies is they treat creativity like a novelty item,” he said.
“It’s tucked away in a box, wheeled out for the pitch. That’s why they’re collapsing, because they’re still obsessed with silos."
Ndidi Oteh, his replacement, said technology had always been important, and creativity will always be important.
“At a certain point, everyone’s going to have the same tech,” she said.
“What will set us apart are the humans. It will always be a talent business, and that’s where we’re going to thrive.”
Meanwhile, Song continues to grow.
Song recorded “mid single-digit” growth in the three months to the end of May, according to quarterly earnings results However, in the year to day (nine months) Song had “high single-digit growth”.
While Accenture didn’t reveal earnings for Song, the group reported Song revenue for the 2024 financial year up 7% to $US$19 billion.
The latest report from Accenture indicates Song will end the current financial year well ahead of the previous year.
Sweet, briefing the analysts on Accenture's third quarter results, gave examples of the work being done via Song.
Accenture is collaborating with Nestle, with brands such as Purina, Nescafé, Dolce Gusto and Nespresso, to accelerate its digital transformation using AI to meet the growing demand for personalised high-quality content.
“In partnership with Accenture Song, we've developed a secure cloud-based platform that creates 3D virtual replicas of physical products to streamline content creation and localisation," she said.
“Nestle's marketing experts can now generate campaign- ready assets without … digitally adjusting packaging and integrating products into formats tailored to each channel and market.
“With thousands of digital assets already created, Nestle is reducing the time and cost of scaling digital twins by over 70%, accelerating production, enhancing quality and keeping their iconic brands top of mind.”
Accenture Song also is helping a “Fortune 100” high-tech company transform its sales and marketing functions to meet the demands of a fast-evolving business landscape.
“With increasing pressure to improve execution, the company is focused on simplifying structure, reducing costs and unifying efforts across regions under a leaner, more agile approach powered by an integrated customer data layer,” she said.
“Together, we're shaping a future-ready model that brings greater integration across sales and marketing, accelerating speed to market, increasing efficiency through automation and shared services, driving value through Gen AI and Agentic architecture.
“By focusing on data, AI, customer experience and simplified ways of working, Song is helping this leading company strengthen execution, enhance creative impact and deliver lasting business results.”
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