Brands: Why Your Agency Will Never Give You What You Really Want
Penri Jones
Fractional CxO | Board Advisor | AI for Business | Public Speaker | Strategy & Innovation Consulting for Brands, Agencies, Platforms and Tech
In today's rapidly evolving digital landscape, an uncomfortable truth demands acknowledgment: your agency will never fully embrace the transformative power of AI and automation. Not because they can't, but because they won't. The metaphor of "turkeys voting for Thanksgiving" has never been more apt.
The Existential Threat
The math is simple and brutal: AI-powered content production platforms can reduce adaptation costs by up to 80% while increasing speed 3-10x. For agencies whose profit models depend on armies of humans pushing pixels around screens, that's not an opportunity – it's an extinction-level event.
When your agency's revenue relies on marking up human hours by 40-100%, how can they genuinely advocate for technologies that could eliminate 70% of those hours? They can't, and they won't.
The Art of Active Resistance: Real-World Examples
The resistance isn't theoretical – it's happening right now, in sophisticated ways that actually increase costs while appearing to embrace innovation. Through our work with global brands, we've documented several patterns of agency resistance:
Case Study 1: The Parallel Process Paradox
A global CPG brand implemented an AI-powered content automation platform designed to streamline adaptation across 30 markets. The agency's response? They created a parallel workflow that:
Result: A process that should have reduced costs by 60% ended up increasing them by 20%.
Case Study 2: The Integration Illusion
Working with another major CPG company, we uncovered how their agency had effectively neutralised a state-of-the-art dynamic content optimisation platform by:
Following the Money: The Brutal Economics
To understand why agencies resist true transformation, you have to follow the money. Imagine a production assembly line stretched across continents, powered by armies of workers in offshore centres. The economics of this model are staggering:
60-70% of a content agency's revenue comes from production and adaptation work.
A single global client’s adaptation needs can sustain entire teams, often numbering in the hundreds.
Each offshore hour of labour, costing as little as $20, is marked up by 50-200% when billed to the brand.
For a global agency network, this isn’t just a workflow—it’s a cornerstone of their business model. A typical brand spending £50M a year on content production could be unwittingly paying £15-20M in unnecessary costs, hidden within the layers of inefficiency.
Now, imagine the existential threat that AI poses to this model. With the ability to automate up to 70% of repetitive tasks, AI doesn’t just reduce costs—it dismantles the very foundation of agency profitability.
Here’s the brutal truth: agencies aren't incentivised to make your production process faster or cheaper. Their success relies on keeping the assembly line moving, even if it's powered by outdated workflows that benefit them more than you.
As one executive candidly admitted to us, “Automation means we’d have to rewrite our P&L. That’s not a conversation we’re ready to have.”
The result? Agencies don’t just resist automation—they often weaponise it, turning tools meant to drive efficiency into justifications for increased costs.
This is why the future belongs to brands that take control, build their own ecosystems, and align their production processes with partners who thrive on efficiency—not complexity.
Breaking Free: Strategic Options
Based on our experience, successful brands typically pursue one of three paths:
1. Strategic In-Housing
Building internal capabilities with direct ownership of technology and data. We've helped multiple global brands achieve 40-60% cost savings through this approach while increasing speed to market.
2. Hybrid Models
Creating flexible partnerships with specialized providers who are incentivized to drive efficiency. Our hybrid model implementations typically deliver:
3. Technology-First Partnerships
Directly engaging with emerging tech platforms while maintaining agencies for strategic and creative leadership. We help brands:
The Arloesi Transformation Approach
Through our work helping brands navigate these challenges, we've developed a proven methodology for breaking free from inefficient agency models:
The Path Forward
This isn't about demonizing agencies – they're simply protecting their business model, as any company would. But brands must recognize:
The Choice Ahead
The future belongs to brands that build or access integrated ecosystems combining:
Take Control of Your Future Today
The turkeys won’t vote for Thanksgiving, and your agency won’t lead the charge to revolutionise your content ecosystem. But that doesn’t mean you’re stuck. With Arloesi as your transformation partner, you can:
Let’s map your path to a streamlined, AI-powered production ecosystem. Contact Arloesi now for a consultation and discover how we can help future-proof your brand’s content operations.