Do small and midsize agencies have the advantage over global networks?
For decades, global agencies have dominated the industry with their scale, network reach, and deep resources. But behind the curtain? Many of these giants are a mess operationally—fragmented, slow, and weighed down by outdated financial structures that make collaboration harder than it should be.
Meanwhile, small to mid-size agencies are operating with more agility, better collaboration, and cleaner financial structures, leading to increased creativity—giving them a real shot at competing (and winning) against the big players. The secret? They aren’t buried under the broken P&L model that makes global networks inefficient.
The Big Agency Problem: A System Built for Internal Competition
Here’s the thing about global agencies: they love to call themselves “one team,” but in reality, they’re a collection of independent businesses all trying to protect their own P&L.
Each regional office has its own revenue targets, its own leadership priorities, and its own financial goals—which means instead of collaborating, teams are often competing for credit, budget, and control.
Need a team in London to support a client led out of New York? Great—except now you have to navigate two P&Ls, conflicting incentives, and endless internal red tape just to make it happen. By the time it’s sorted, the client has already moved on.
Meanwhile, small and midsize agencies don’t have that problem. They operate under one P&L, one leadership team, and one financial structure—which means they can move fast, staff smart, and focus on the work, not internal politics.
How Small & Mid-Size Agencies Can Keep Winning
The opportunity for independent agencies isn’t just about being small and nimble—it’s about scaling smart while avoiding the traps of traditional network structures.
Instead of getting caught up in the regional office P&L wars that slow global agencies down, small to mid-size firms should double down on what makes them different:
1. Keep One P&L, Always.
The moment you start splitting financial control across markets, you create inefficiencies and misaligned incentives. Keeping everything under one structure means you can staff projects based on talent, not financial politics.
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2. Go Global Without the Bloat.
You don’t need offices in 10 countries to serve global clients. Build a hybrid talent model—mixing full-time in-house teams with trusted international partners—so you can scale without carrying overhead that kills profitability.
3. Make Collaboration a Competitive Advantage.
While big agencies are still fighting for budget internally, small and mid-size firms can actually work as one team. That means faster turnarounds, smarter staffing, and more cohesive work—exactly what clients want.
4. Sell Results, Not Size.
Clients don’t care about how many offices you have—they care about who’s doing the work and whether it delivers results. Mid-size agencies can outmaneuver holding companies by offering direct access to senior talent, faster decision-making, and a more hands-on approach.
The Future: Mid-Size Agencies That Act Big, Without the Bureaucracy
Global agencies will always have their place, but the cracks in their model are more visible than ever. Clients are frustrated with slow-moving, overly complex agency structures—and they’re looking for more agile, results-driven alternatives (humanity is moving fast).
Small and midsize agencies have the biggest opportunity in years to challenge the old model. By staying lean, keeping operations unified, and scaling smart, they can offer everything clients love about big agencies—without the inefficiencies that hold them back.
It takes courage for a small or midsize agency to double down on what makes them different...and win.
Growth Strategist | HubSpot & GoHighLevel Expert | Cannes Lions Award-Winner
1 个月Great advice
EVP Managing Director, The 360 Agency
1 个月If you’re leading an agency or working across multiple markets, this one’s for you.