Agents' World Upended by 20 Major Disruptions: Learn to Adapt for Survival
Chilling out and keeping up with the ever-evolving world of agency work ain't no piece of cake, pal. With AI, shifting client expectations, and the death of traditional mediasources, agencies need to adapt faster than a cheetah on roller skates. But figuring out the best way to stay afloat can be trickier than solving a Rubik's cube blindfolded.
Luckily, we got 20 kick-ass members of the Forbes Agency Council sharing their insights on the biggest disruptions the agency world is facing. They're spilling the beans on strategies they're using to navigate these choppy waters, whether it's leveraging new technology or refining service offerings. Here's the lowdown:
- GenAI and Agentic AI: Today's the day of GenAI, and agentic AI is the next big thing on the horizon. As agencies are service businesses, they're embracing disruptive tech and figuring out ways to leverage it to optimize quality, delivery, and price.
- Independent Agencies: The growin' preference for independent agencies over holdin' companies is a significant disruptor. Holdin' companies are havin' a tough time keepin' up with the client preferences for creativity, agility, and continuity. The future ain't Goliath, it's an adaptable indie!
- AI Search: A major concern is the impact of AI search on clients' SERPs. Agencies are workin' hard to adapt their planning and execution tactics to ensure their clients remain relevant and visible.
- Fragmented Marketing Landscape: With marketing messages more fragmented than ever, consumer attention is precious. To compete, agencies are takin' an education-led approach that teaches instead of sells.
- Accelerated Execution: The risk for agencies is focusin' too hard on output and becomin' commoditized. The opportunity is to use the time that AI and automation free up to push brand strategy further.
- Data Overload: The biggest disruptor isn't just AI; it's the data overload. Agencies are drownin' in insights, but the real challenge is filterin' the signals from the noise and makin' decisions that drive revenue.
- The Evolution of the Workplace: Personnel costs are agencies' highest expense, and managing productivity, reduce turnover and hybrid workplaces can be challenging. Agencies gotta adapt to meet the needs of the next generation of practitioners.
- Performance Media: Performance media is one of the biggest disruptors as pressure to achieve ROI grows. Agencies are shiftin' focus to footfall attribution and conversion tracking for Connected TV advertising, among other methods, to ensure every dollar delivers maximum impact.
- Inflation's Economic Impact: Many businesses are makin' tough financial decisions, forcin' them to be more selective about where they invest their marketing dollars. Agencies are respondin' by offerin' flexibility, allowin' clients to suspend services or adjust to a lower-cost plan with fewer services when needed.
- Campaigns in-House: The biggest disruptor for agencies is self-serve digital platforms that lead to campaigns being taken in-house. Agencies gotta step up their game by reportin' on vanity metrics and not considerin' the impact their campaigns have on business goals.
- New Ways of Consumin' Media: The audiences ain't the same, and today they're scattered across TikTok, Reddit, Twitch, and new spaces like Threads or Bluesky. Agencies gotta adapt to an adaptive, always-on strategy that ensures brands don't just "show up" but also connect with their audiences.
- Clients' Demand for 'More, Faster': Agencies are facin' significant pressure to deliver more, faster. To protect mental bandwidth, agencies are prioritizin' deep work, rethinkin' workflows, and focusin' on impact over volume.
- Audience Fatigue: The biggest disruptor is audience fatigue. With endless content, it's hard for brands to stand out. Agencies are tacklin' this by focusin' on interaction over impressions, shiftin' from passive posts to real conversations through live Q&As and co-creation. The goal ain't just visibility; it's genuine connection and lead generation.
- Decentralization: Decentralization is a major disruptor as brands increasingly manage PR and marketing in-house. Agencies gotta adapt by buildin' a personal brand and considerin' launchin' a meme coin for their agency.
- Algorithms Limiting Organic Reach: Algorithmic gatekeepin' platforms limit organic reach, forcin' agencies to rethink distribution. Agencies are respondin' by diversifyin' media strategies, leveragin' owned audiences, and optimizin' for engagement.
- AI-Driven Automation: The biggest disruptor in the agency world today is AI-driven automation, which is reshapin' content creation, analytics, and even content strategy. Agencies gotta adapt by doublin' down on strategic insights and recommendations and bespoke storytelling, areas where human expertise remains irreplaceable.
- AI and SaaS in Workflows and Billin': AI and software as a service have disrupted agency workflows and billin'. Agencies gotta adapt by integratin' AI for tasks like reporting and editing while doublin' down on creativity, critical thinking, and storytellin' - skills tech enhances but can't replace.
- Rapid Technological Advancements: The rapid advancement of technology poses a significant challenge for agencies. Agencies gotta reassess their financial and technological strategies to stay ahead.
- AI's Impact on Content Creation and Engagement: In healthcare marketing, the biggest disruption is AI's effect on content creation and patient engagement. While boostin' efficiency, it risks errors and compliance issues. To manage this, agencies use AI tools with human oversight to ensure accuracy, regulatory compliance, and empathy in messaging.
- The Redefinition of Value Propositions: The commoditization of AI tools is forcin' agencies to redefine their value proposition. Agencies that focus on strategic consulting capabilities can stay ahead, elevatin' their role from service provider to strategic partner.
- To stay competitive in the rapidly changing agency landscape, some agencies are rethinking their strategies to enhance their use of technology, such as leveraging GenAI and Agentic AI to optimize service quality, delivery, and pricing.
- In light of shifting client preferences, agencies might need to reconsider their structures, like moving towards independent agencies that offer creativity, agility, and continuity, potentially outperforming holding companies in the long run.