Advertising Agencies 2028--Part IV

This is part four of a series on the future of advertising agencies. What follows are some of the best comments that I received from the few dozen whom I interviewed or ask for their opinions via e-mail:

An unusually thoughtful youngish media chief who has a reputation for striving to stay on top of changes:

“I was recently with a couple of smart people in the industry, and we were talking about two of the primary dynamics that exist (knowing there are many more than that). On one hand, you have consultancies who can charge premium fees for services but often in a more limited term role. On the other end of the spectrum, you have agencies which are still in the value pricing mode and seeking longer-term relationships. Our thought was that agencies should evolve to somewhere in the middle. So how do we take the best parts and then how do we weed out the worst? Of course, that is a very simple thing to say. We talk all the time about “solving problems”, but are we set up to solve problems in the best way? Do we talk about it through the eyes of the client?

Lastly, my dad is not in the industry but loves to talk to me about it. He says that even with the rise of automation, there will always be a need for people to think and people to solve problems. So to me, the agencies of the future will need to get back to their roots and focus on what creates the most value for the clients.  The roles that are also found at clients need to go away, and we need to focus on how we compliment them instead”.


A young digital account executive whom I have known for several years and find amusing. He is on fire for the business and commented as follows in two areas:

Freelancing
Due to other economic factors, businesses are cutting hours and benefits. As a result, there will likely be fewer traditional, full-time employees. Instead, I believe agencies will lean heavily on freelance specialists as needed based on ever-changing client and project requirements. When the project is over, the freelancer is done. That’s not to say the same freelancers couldn’t be used time and time again and repeat partnerships are formed between agencies and talent, but from a human capital perspective, the workforce won’t be the same as it is today.

Global teams
Again, partially tied to other business factors. Office space is expensive and talent is dispersed globally. I can see agencies leveraging teams of designers, writers, and developers from hotbeds around the globe to attain the best talent and offset costs. Screen share and virtual meetings will become ever more present than they are today. Agencies will become increasingly specialized.

Even more so than today, rather than specializing in a marketing service that we provide to a wide variety of clients, agencies will provide their services to a very specific industry and will become increasingly ingrained in the trends and strategies within that market. Higher Education for example; many agencies will specialize in higher education and improve at prospecting and lead generation specific to that industry’s user’s needs.


A long time media executive with her feet on the ground and a great sense of humor:

To think about how agencies evolve, I’d first imagine how the sales structure evolves (seeing as that’s where it starts for me!)

- We’re still in the game of delivering content, building audiences, utilizing data (perhaps our new currency vs. today’s NSI data) and monetizing advertising platforms. 

- Our sales force is different.  Fewer sellers, focus is on digital assets (vs. linear cable ad sales).  Maybe we are not focused on selling one market  but have the ability (and capability) to sell multi-market ad campaigns.  There are no geo-fences in the digital world.

- Delivery of commercial content is IP-based, operations at stations (and in cable) consolidated.

- More programmatic opportunities (interactive & linear) also the reason for a reduced sales force.

So the agency:

-  Creative boutique shops will exist, maybe more than we see currently, focused on creating multi-faceted interactive campaigns – video still reigns.  These are the shops that attract the new talent…grads trained on the new next thing (Internet 2.0)?  Bringing ideas on how clients can market their products/services and accurately measure the effectiveness of their ad campaigns.

- Further consolidation of large behemoth groups.  Verticals within agencies exist.  Interactive (digital) departments lead with traditional media departments a thing of the past.  Just as on sales side, fewer planners/buyers.  The survivors are those who know what a digital/multi-screen campaign is and how to best put it together for successful execution.  Accountability to growing the client’s business is measurable and thus, measured.

- The growth of DSPs or Trading Desks at agencies continues as more campaigns are executed programmatically.  (Also a reason for fewer planners/buyers.)

Next, a true gentlemen and sales executive who keeps growing in the business as it keeps shifting says:

“My outlook on the future is that Ad Agencies will likely undergo a cycle of closures, re-organizations and new partnerships.  Today’s environment of discounts and pitches focusing on “we can do it cheaper” and “we’ll handle your account for free” and “we’ll return the media commissions to you” is de-valuing their work, their ability to hire and retain talent, and the value of the media with which they must partner.

Agencies are implying that their own output is cheap by those statements and practices that I have mentioned.  I believe (like every part of our business) that this is a temporary situation, but please don’t ask me to tell you the duration!
We’ve always had lower-priced agency customers, but also agencies that buy high-profile media to achieve the reach and quality audiences that they need.

Don, the world changed and our agency friends and partners are still behaving as if it is the ‘70’s.  Maybe I am giving them too much credit.I work directly with my customers’ CMO’s and marketing teams.  Their store operators and franchisees.  The only agency interaction I have now is with buyers and their supervisors.  Most of that time is spent telling them what their clients wants and needs.  They are amazed that I know so much about their business.  I then asked one Media Director how often she met with her client’s Media Strategists.  Her answer?  You guessed it!  She had never met them.

Agencies may be blind but the company hiring them has some responsibility to incorporate them into their teams, demand engagement and measure results.I am afraid that the kids behind us can never re-make what we’ve experienced because no one is really trying anymore to create success.  They’re all waiting for someone to hand them answers.

Sorry for my rant, you motivated me!”


From a long time media researcher, a different twist:

“If I had to answer in one word: Blockchain.

Any predictive analysis must account for how Blockchain will change the way agencies run.It can potentially even affect how creatives collaborate. I'm not even sure enough is known about it yet. Nor if blockchain is even the revolution that is claimed.
I certainly don't know enough. But I do know the central banks are worried about it”.

You may find the Blockchain comments “out there” but I have known him for over 20 years and find him to be a genuine original thinker. So, I never play him short.

A small market TV general manager asked to weigh in:

“As you know, Nielsen announced days ago that they will not longer measure the Glendive DMA or the Juneau DMA. Big deal, you might say. Well, to us, it means that we will disappear as a DMA within 24-36 months. It does not really matter and the majority of our sales are directs and the local guys do not know how to read a rating book anyway. I do not see us being a programmatic player either. So, what happens? We slowly go out of business. Streaming is catching on big time even out here in the boondocks and our TV station does not work well for clients anymore in many cases. Small agencies and buying services in outlying areas have to die in this environment.”

A senior media research salesperson: “I have had it. When I go in to agencies, the young planners and buyers seem to resent seeing me. I really could help them but there there is little intellectual curiosity about where our data comes from. If I did not have kids in college, I would quit and become a starter on a golf course or something. The agency teams are beyond superficial.”

Conclusions? That will be Part V coming in several days.

If you would like to contact Don Cole directly, you may reach him at doncolemedia@gmail.com