Ad agencies are threatened with competitive obsolescence because of their inability to buy into new technology, according to Josh Wepman of GCA Savvian, who cited structural reasons for this
inability. Large holding companies tend to buy with stock and borrowed cash with prices based on earnings and a precise calculation of future prospects. New technology, which is by definition full of
as-yet-untapped (and therefore difficult-to-quantify) potential. This will make it harder for publicly traded hodling companies to justify purchases to their shareholders. However, more
technology-oriented companies (both public and private) will recognize this potential and be able to act more quickly, leaving agencies in the dust. Most notably, a little company called Google.