Why Most Agencies Won't Survive Beyond 2025

By Martin Jeffrey

With greater automation and AI handling everything from audiences to strategy, many are asking—what does a marketing agency do nowadays? I’ve said before that marketing is facing its biggest paradigm shift yet, driven by two forces: AI and automation, both of which can effectively remove the human/agency from the equation.

As these technologies advance, agencies are no longer focused on just managing paid ad campaigns or SEO. Instead, we’re pursuing broader strategies, deep knowledge, and real-world experience as our core USPs. Clients know AI can now complete tasks like keyword research in hours—something that used to take days—so the agency proposition must centre around delivering value that machines can’t.

In 2025, agencies will need to specialise more than ever. Rather than offering generalist services, agencies will move toward niche expertise, such as data analytics or content strategy, to provide deeper insights. Specialisation allows agencies to deliver targeted, quantifiable results. Research shows that specialised agencies report a 25% higher ROI for their clients compared to generalist agencies, with increased customer satisfaction rates due to their focused expertise.

The future agency model will focus on consultancy, guiding long-term planning and insights that aren’t just about short-term campaign execution. This shift means agencies will need to provide more than just tactical support; they must build collaborative partnerships with clients, acting as extensions of their internal teams. The agency of 2025 will be all about value-driven strategy, combining technical know-how with creative solutions.

As marketing becomes more personalised and AI-driven, agencies will need to provide a strategic direction that balances automation with human creativity and insight. The real value now lies in making campaigns resonate at a deeper level, and it’s those agencies that can offer this holistic, specialised approach that will thrive in the years to come.

What you need to know this week..

Google Pushes Back on DOJ’s Proposed Breakup

Google, which currently handles 93% of global search traffic, is resisting the DOJ’s proposed breakup plan, arguing it could disrupt its advertising ecosystem. This would have far-reaching consequences for both advertisers and users. For advertisers, the fragmentation of Google’s tools could mean reduced targeting efficiency and higher costs for digital ads, potentially affecting return on investment. For users, changes to Google’s services—such as search, Chrome, and Android—could lead to a more fragmented and less seamless online experience, making it harder to access information quickly and securely.?

Brands Missing Out on Booming Boomers' Digital Shift

A new report from WARC warns that brands are overlooking Baby Boomers—one of the wealthiest and most digitally engaged generations. Boomers (aged 60-78) are increasingly shifting to digital media, particularly online versions of traditional formats like connected TV and digital news. Despite the focus on Gen Z, the report highlights that Boomers have adopted digital habits at an accelerated pace, largely driven by the pandemic.

Boomers now spend 1 hour and 31 minutes daily on social platforms, a 14-minute increase since 2020. Facebook remains their top choice, with 29% of weekly users aged 55 and older, while TikTok engagement is far lower at just 9%. However, even as Boomers become more digitally active, their ad receptivity remains low compared to younger generations.

Brands need to reconsider their strategies and media planning to cater to this affluent audience, aligning their digital marketing approaches with Boomers’ unique media consumption habits. Otherwise, they risk missing out on a lucrative, yet underserved, market segment. With streaming services like YouTube and Netflix seeing significant growth among Boomers (up 195%), it’s clear that digital content is reshaping their media behaviour in ways brands can no longer afford to ignore.

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Roblox Accused of Inflated Metrics

Hindenburg Research claims Roblox overstated user numbers by up to 42%, using separate figures for internal decisions and investor reports. They also raised concerns about the platform’s failure to protect children from explicit content, including groups soliciting inappropriate material. Earlier this week, I questioned whether marketing agencies should reconsider adopting the platform.

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What the Shift Away from Likes Means for Your Business

The move by platforms like X (formerly Twitter), TikTok, and Facebook to deprioritize Likes presents an opportunity for business owners to rethink how they measure success in digital marketing. Instead of focusing on vanity metrics like Likes, which provide little value, business owners should shift their attention to metrics that reflect deeper engagement. For instance, track how social content drives traffic to your website, analyse conversion rates, and evaluate follower growth and engagement per follower. These metrics offer clearer insights into customer interest and business growth.

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Shein's $2 Billion U.K. Revenue and Potential IPO

Shein reported $2 billion in U.K. revenue for 2023, a 38% jump from previous filings. With plans for a London IPO, this could shake up the online fashion retail scene. Shein's rapid growth and profitability may increase competition for U.K. fashion retailers, potentially forcing them to rethink pricing, supply chains, and customer acquisition strategies to keep pace.

End-of-the-Year Predictions for PPC in 2025

The PPC landscape in 2025 (and beyond!) will be heavily shaped by AI and evolving privacy regulations. Platforms are pushing AI-powered tools, allowing marketers to automate processes and personalise campaigns, but this also reduces control over audience insights. As third-party cookies fade out, first-party data will become essential for targeting.

This year Consent Mode has fundamentally changed how businesses track users, requiring opt-ins for data collection and impacting conversion tracking. This has led to more transparent and privacy-compliant strategies, forcing marketers to rethink how they gather and use customer data. Adapting to these changes is crucial for staying competitive, as privacy regulations continue to tighten.

To prepare, businesses should focus on building direct relationships with their audiences, leaning into first-party data strategies (i.e. server-side tracking) and exploring new ways to personalise without invasive tracking.?

That’s all for now

If you have any news or tips related to digital marketing and technology, I would be interested in hearing from you.

As the digital landscape evolves, so will our content. Be sure to catch the next issue of "3 Minute Thrive" coming your way soon. We'll be bringing you more concise and impactful insights to help you navigate the ever-changing world of digital business. Stay informed, stay connected.