The dynamics between brands and their communication agencies are evolving faster than ever, driven by technological innovations, changing consumer behaviors, and economic challenges. Below, we explore the seven key trends shaping the collaboration between brands and agencies.
1. The rise of integrated platforms: all-in-one solutions
Major advertising holdings like Publicis, WPP, and Omnicom are gradually transforming from traditional agencies into integrated platforms where data, AI, and technology take center stage. Instead of operating as separate creative and media agencies, they now offer comprehensive marketing platforms that combine strategy, targeting, and automation. This approach allows brands to respond more quickly to market developments, create tailored campaigns, and operate more efficiently. The line between advertising agencies and tech companies is becoming increasingly blurred.
2. AI as a game-changer
Artificial Intelligence is playing an increasingly significant role in agency work, from data analysis and audience segmentation to content creation and media buying. AI tools enable automatic optimization and personalization of advertisements, making campaigns more effective. At the same time, AI is reshaping the creative roles of humans in the industry, such as in concept development. While AI offers many benefits, it also raises ethical questions, including transparency and the risk of job losses.
3. Flexible collaborations and project-based work
While long-term Agency of Record (AOR) contracts may be less common than before, they still hold significant value. Some brands are exploring project-based collaborations, selecting agencies based on specific expertise for individual campaigns. This approach is particularly visible among tech companies and e-commerce players. However, constantly switching agencies can lead to inefficiencies, higher coordination costs, and a lack of long-term strategic consistency. For agencies, this shift increases competition and short-term pressure, potentially at the expense of deeper brand understanding and creative cohesion. While flexibility is important, a stable agency partnership often leads to better results over time.
4. Increasing in-house agencies
More brands are setting up in-house creative and media teams to reduce their dependence on external partners. These internal teams can react faster to trends and optimize costs. Supported by AI and automation, they collaborate closely with departments like product development and sales, aiming to enhance campaign effectiveness. However, external agencies remain essential—not only for strategic advice and large-scale projects but also for high-quality creative work. Many advertisers are starting to realize that hiring creative directors for in-house operations does not always lead to the expected results, reinforcing the continued relevance of external creative expertise.
5. Shifts in media spending
The shift to digital media is accelerating, with a growing emphasis on retail media, connected TV, and programmatic advertising. Platforms like Amazon, Google, and TikTok are benefiting, along with streaming services such as Netflix and Disney+. At the same time, media investments are increasingly focused on digital channels, where data plays a crucial role. ‘Always-on’ and one-to-one communication, powered by first-party data, is becoming the norm. Brands are leveraging data cleanrooms and enrichment strategies to maximize targeting precision while ensuring privacy compliance. As a result, media agencies must rapidly expand their digital and data capabilities to remain competitive. Meanwhile, traditional media channels like print and linear TV continue to lose ground, underscoring the growing need for data-driven innovation.
6. Consolidation and restructuring of agency ecosystems
Many companies are consolidating their marketing activities with a smaller number of agencies to cut costs and operate more efficiently. Centralization allows brands to leverage economies of scale and create more consistent brand strategies. This often results in larger contracts for full-service agencies, while smaller specialized players face greater challenges. However, this approach carries risks, such as reduced creative diversity and increased dependence on a single agency.
7. Acceleration of mergers and acquisitions
The advertising industry is witnessing a rise in mergers and acquisitions, driven by the need to strengthen digital and AI capabilities. Large networks are acquiring smaller, specialized agencies to expand their service offerings, such as in influencer marketing and e-commerce. While this consolidation offers cost savings and a broader range of services, it can also lead to reduced creative diversity and fewer choices for advertisers.
The brand-agency relationship is undergoing significant transformation. Technology, particularly AI, along with the need for flexibility and efficiency, plays a crucial role in this evolution. For brands, it means more opportunities to develop tailored and targeted campaigns. For agencies, it presents the challenge of remaining relevant in an increasingly dynamic and competitive ecosystem. What is clear: only the most flexible and innovative players will survive in this rapidly evolving industry.
At PitchPoint, we’re passionate about helping brands and agencies optimize their collaboration so they can unlock their full potential together. Curious how we can improve your partnership? Get in touch with us at mia@pitchpoint.be.
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