New Agency Types

Recently read an article by Forrester that predicted agencies will jettison their legacy agency structures to form new agency types in 2025.

The article starts by saying: “The last 24 months have been challenging for the agency marketplace, with depressed tech spending in the US and global dragging of agency performance.”

It goes on to say: “The start-stop nature of existing or newly awarded brand assignments was a source of financial frustration. Yet 2025 shows signs of optimism, including a strong US economy, a resurgence of brand spending, and a growing independent agency market.”

What the author concludes is that 2025 promises to bring new agency offerings and types to address marketers’ continued desire to do more with less.

The author goes on to predict:

AI-powered content production will decelerate marketing in-housing.

The thinking here is that AI will make agencies more efficient and more cost effective – making them more competitive price-wise relative to in-house staff.

Not sure just how quickly that will happen as many of the marketers that I interview for The Marketer’s Edge interview series are suspect of the value of AI and while they use it, they use it sparingly and cautiously.

One-third of digital media specialists will evolve into full-funnel agencies.

I don’t doubt this because we’ve already seen this happen.? Been happening since digital media agencies offerings became less unique and the desire for marketers to consolidate their agency rosters pushed digital firms to broaden their offering.

“What got you here won’t get you there” rings true.

Next year’s marketing agency landscape will be characterized by new models and offerings, designed to meet the ever-changing needs of marketers and organized to make them more competitive in a complicated, crowded marketplace.

What’s not new here is what’s not new here.

I started our outsourced agency new business firm, RSW/US, in 2005.? Since then, we have seen constant change.? The market has gotten more complex, the demands of marketers have gotten more intense, the cost of doing business continues to rise, and the need for agencies to keep their clients ahead of the technology and business curve has only become more critical for an agencies long-term relevance.

What’s this mean for you, the marketer?

If you start 2025 and take a look at your agency and you’re not seeing the evolution in their view of the world, might be time to explore new agency options.? The last thing you want to do is let lots of time pass only to get further and further behind in the game of competitive gamesmanship.