Taboola Recently Asked "What is an ad agency?"
Oops, I Missed the Deadline (Again): Here’s My Take Anyway
My team member, Cassandra, has been sourcing opportunities for us to contribute as KOLs (key opinion leaders) on topics where we know we have valuable perspective. She’s incredible at finding the right content sites and industry asks. The problem? Well… sometimes I procrastinate just a little too long and miss the deadlines. Classic me.
One recent miss? Taboola asked for expert takes on the question: “What is an ad agency?” So even though the submission window has come and gone, I’m tossing in my two cents anyway—because this is a topic I live and breathe every day.
Taboola: What is an ad agency?
Nikki Lindgren: IMO an ad agency is a team of specialists that collectively bring marketing campaigns to life. Think account managers, creative directors, designers, strategists, media buyers, and analysts—each playing a role in helping brands launch and scale advertising that performs.
Taboola: What does an advertising agency do?
Nikki Lindgren: They’re end-to-end campaign experts. From strategy and creative to paid media execution and performance analysis, a good agency builds, runs, and optimizes campaigns to hit growth goals—then does it all over again for the next one.
Taboola: What are the benefits of working with an ad agency?
Nikki Lindgren: The big win is having everything centralized: strategy, creative, media buying, and reporting. You get one team, one point of contact, and one aligned goal—driving results. (Caveat: turnover happens, and when it does, continuity can take a hit.)
Taboola: What are the various types of advertising agencies?
Nikki Lindgren: Some are generalists who run ads across every channel—social, search, display, etc. Others go deep into specific verticals like CTV, audio, OOH, or influencer. Picking the right type depends on your growth stage and business goals.
Taboola: What are common ad agency services?
Nikki Lindgren: Most agencies handle campaign strategy, creative production, media buying, reporting, and performance optimization. Some also offer influencer sourcing, UGC, CRO, or email/SMS management as add-ons.
Taboola: What is the future of ad agencies?
Nikki Lindgren: The trend I see most? Downsizing and niching. Brands want partners who deeply understand their industry and platform—depth over breadth is winning right now.
Taboola: What are the Big 4 advertising agencies?
Nikki Lindgren:
Tinuiti – One of the biggest indie performance firms managing growth across Meta, Google, and marketplaces like Amazon. Trusted by brands like Casper and Etsy.
WPromote – Full-funnel marketing with killer DTC creds (Vuori, Zenni, Hint). Known for blending performance and creative.
Hawke Media – Popular for its à la carte model and DTC focus. They call themselves the outsourced CMO for a reason.
Power Digital – Performance meets tech. Their proprietary platform “Nova” tracks every dollar spent. Brands like Jenny Craig and Uniqlo are on board.
Taboola: Do ad agencies make money?
Nikki Lindgren: Absolutely. Most agencies operate with healthy margins—traditional ones average over 35%. Profitability comes from operational efficiency, client retainers, and repeatable media processes.
For clarity, Pennock is not just an ad agency—we're your growth partner. We provide comprehensive management of paid ads, SEO, and TikTok Shop/Affiliates. Think of us as a hybrid of in-house and outsourced growth consultants. We go above and beyond what's outlined in our SOW because we genuinely care about the success of the brands we work with.
Nikki Lindgren is the founder of Pennock.co, an ad agency helping DTC brands scale customer acquisition without burning out their budgets or their teams.