The old agency model is broken

Inside most agencies, the pressure is constant, whilst projects are moving faster, budgets are being tightened, and clients expect more for less. Teams are stretched, timelines are shrinking, and creative quality is expected to remain high, regardless of how the environment changes.

The systems many agencies rely on were built for a slower pace and a more predictable kind of partnership. Traditional processes, clear departments, step-by-step workflows, and structured hierarchies, once supported the way creative work moved.

There’s data to support what many agency leaders and teams already feel. A 2024 WARC study shows that 58 percent of global marketers are reviewing their agency partnerships more often, with flexibility and value among the top priorities. At the same time, Adobe’s State of Creativity report highlights that 87 percent of creatives feel overwhelmed by the content volume expected of them, and 73 percent say they lack the time needed for proper idea development.

These are not temporary stress points, I believe they reflect a growing mismatch between how agencies are structured and what modern work demands. Solving this isn’t about pushing harder or working longer. It requires a shift in how creative businesses operate and one that places people and processes at the centre.

The five themes below outline how the traditional agency model is falling short, and what forward-thinking teams are doing to build something more sustainable in its place.

Autonomy is the new currency

Across creative and marketing roles, flexibility is no longer seen as a benefit, it's become a basic expectation. Since the pandemic, how people think about time, focus, and personal autonomy has shifted. Teams want more control over how their work fits into their lives, and they want to be trusted to deliver without constant oversight.

According to Gallup, more than 80 percent of remote-capable employees now prefer hybrid or fully remote roles. This trend reflects more than convenience, it points to a deeper demand for flexibility and a growing discomfort with traditional management systems that prioritise presence over performance.

Some agencies have started to rebuild around these preferences by setting clear expectations, enabling asynchronous workflows, and measuring success by output rather than hours. These changes are not about being lenient, they're about creating the conditions that allow people to do their best work without unnecessary friction.

Rigid schedules and location-dependent collaboration no longer serve most creative teams. The agencies that adapt their operating models to support autonomy are finding it easier to attract talent, retain clients, and keep the quality of work high under pressure.

AI infrastructure

Artificial intelligence is already part of the workflow in many agencies, helping teams move faster, test ideas earlier, and reduce the time spent on repetitive tasks. Tools like ChatGPT, Adobe Firefly, Midjourney, and ElevenLabs are being used for everything from concept development and content drafting to realistic voiceovers and visual prototyping.

According to McKinsey, up to 70 percent of time spent on repetitive marketing tasks could be automated using generative AI. The agencies leading this shift are treating AI as a functional layer within their operations, not just a tool, but part of how the work gets done.

The most effective teams are training their creatives to prompt thoughtfully, use tools ethically, and build workflows that blend automation with human input. This approach protects quality while increasing speed and efficiency.

There’s no value in resisting AI, but there’s also risk in relying on it without intention. Agencies that take the time to embed it properly into their processes are better positioned to deliver faster without cutting corners, and to free up creative time for the work that really makes a difference.

Roles are becoming fluid by design

Traditional agency roles were built around clear lines, designers, writers, strategists, and account managers each had their place. Today, those lines are increasingly blurred, as smaller teams are asked to do more with less and clients expect integrated thinking from fewer people.

LinkedIn’s Future of Work report shows that over 70 percent of professionals are now developing skills outside their original role. Within agencies, this shows up in cross-functional collaboration, project managers who contribute to creative development, designers who engage in strategic thinking, and content creators who understand analytics and performance.

This shift reflects the reality of how work happens now. Clients are asking for tighter turnarounds, broader thinking, and more proactive delivery. The most effective teams are flexible by design, combining specialists with generalists who can stretch across disciplines without diluting their impact.

Agencies that encourage skill development across roles, remove unnecessary hierarchies, and build collaborative workflows are better placed to respond to the pace and complexity of modern work. 

Clients expect more

Clients no longer just want a partner who can deliver a brief, they’re looking for strategic thinking, relevant insight, and the kind of collaboration that shapes outcomes, not just assets. The shift from service provider to value partner has been growing for years, but it’s now a clear expectation.

Deloitte’s 2023 Global Marketing Trends report found that more than 70 percent of CMOs are increasing investment in agencies that deliver strategic impact, not just creative execution. This reflects how internal marketing teams are evolving. When clients are under pressure to move faster and prove results, they expect their agencies to step up, not just show up.

The agencies responding to this shift are focusing on proactive support offering insights before being asked, running planning workshops, sharing trend analysis, and shaping long-term thinking. These are not add-ons or value props they’re what it takes to stay relevant.

This kind of work builds trust and positions agencies as collaborators rather than suppliers. It also makes relationships more resilient, because value is being demonstrated beyond the work itself.

Pricing Pressure 

Pricing has always been a point of tension in agency-client relationships, but the pressure has become more acute. Brands are reviewing partnerships more often, often through procurement, with cost playing a bigger role in renewal decisions. According to the IPA’s Bellwether Report, over 60 percent of brands are now more price-sensitive than they were before 2020. This shift is affecting how agencies pitch, scope, and deliver their work.

To stay competitive, many agencies have lowered rates, taken on more volume, or absorbed extra rounds of delivery. While these tactics can keep the work coming in, they often create internal strain. Over time, they erode team wellbeing and weaken the long-term value of the partnership.

In response, some agencies are moving toward alternative commercial models — subscription retainers, modular scopes, and pricing based on business outcomes rather than just outputs. These models help set clearer expectations, while offering flexibility that reflects the real pace of work.

At the same time, there has been a sharp rise in the use of offshore and distributed talent to preserve margins without raising costs. Agencies are expanding globally not just to scale, but to balance delivery efficiency with commercial sustainability. When done well, this approach supports round-the-clock production, faster turnarounds, and access to specialised skills — without compromising quality.

Clients are becoming more aware of the trade-offs between cost and value. Agencies that can clearly communicate the impact of their work, and how their delivery model supports both quality and scale, are in a stronger position to lead conversations on pricing — rather than being reduced to line-item comparisons.

Conclusion

The challenges facing agencies today are not isolated or short-term and reflect deeper cracks in a traditional model built for a slower, more predictable kind of work. While operational changes may relieve pressure in the short term, they often fail to address the structural issues beneath the surface.

Creative teams want more autonomy and a balanced work life,  AI is becoming infrastructure that agencies much embed if they are to survive, roles are becoming more diverse and fluid with cross skill integration and clients expect strategic value, pricing models are under pressure to deliver more impact with transparent reporting.

These five shifts are happening now and reshaping how agencies need to think, operate, and evolve.

What’s also becoming clear is that size is no longer a reliable advantage. A recent report by The Drum and Moore Kingston Smith showed that independent agencies in the UK outperformed the top 50 large agency networks in revenue growth for the third year running. The appeal of smaller, specialist agencies lies in their ability to move quickly, work collaboratively, and stay close to both the client and the craft.

Rather than compete on scale alone, larger agencies should be looking at how they partner, not just acquire. Collaboration with niche, high-skill teams allows them to tap into deeper expertise and keep pace with evolving client expectations without carrying the same structural weight.

The agencies that will lead the next phase of the industry won’t be defined by how big they are, but by how adaptable they’ve become. Those willing to reimagine their model from how teams are built to how partnerships are formed will be best placed to meet what’s coming next.