How creative agencies can thrive despite industry fragmentation

There has been much debate as of late about the role of creativity in today’s advertising landscape. Allow me to settle it once and for all: The death of creative agencies—a constant refrain in our industry—is overstated. From the emergence of the web to the rise of social media and now AI, many have predicted creativity’s demise. And yet, creative agencies of all types—networks, independents, and specialists—continue to shape the industry, be sought after by clients and help brands grow. However, I will acknowledge that delivering consistent growth has been difficult. We’ve seen major consolidations in recent years and the elimination of some of the industry’s most iconic brands. As a recent Ad Age article pointed out, the fragmentation of media, the declining tenure of client-agency partnerships and the separation of production from creative have all contributed to the challenges facing creative agencies today. Shifting industry landscape The structural changes in our industry are real. Creative agencies, in aggregate, have struggled to grow, and many independents face the same challenge. But many creative agencies have bucked the trend. Some agencies and networks have seen sustained, double-digit growth across geographies, proving that creativity still drives success when paired with the right strategy, operational model and—of course—team. Ad Age Small Agency Awards Showcase your agency’s creativity, business success and commitment to a thriving workplace. Enter today Fundamental to this growth is demonstrating the effectiveness of creativity to clients and linking what we do to real growth. Agencies that can demonstrate the impact of their work are well positioned to grow and those that can’t, usually don’t. At a time when consolidation and one-team models dominate, it’s crucial to remember what attracts top talent to agencies in the first place: their distinctiveness and the unique agency brands that they can help shape and define. Clients don’t want uniformity; they seek agencies with unique points of view, strong cultures, proprietary processes and the tools to deliver outstanding work. Creativity thrives in the right environment The myth of the single creative superstar is long gone. The best work doesn’t come from lone geniuses, but from teams empowered with the right environment to succeed. Another key issue is the sheer volume and speed at which content is now produced. There can be a regression to the mean, where creative output is invisible, blending and contributing to the clutter rather than breaking through it. While this reality could be discouraging, it’s an opportunity that should excite the most creative people in our business. Now more than ever, agencies that stand for creativity and invest in their talent can differentiate themselves and drive real impact. The key to revitalizing creativity isn’t treating top talent as interchangeable cogs in a machine. It’s about recognizing, rewarding and empowering them with the freedom to do what they believe is best for their teams, clients and companies. Agencies that foster environments where teams have both autonomy and support will be the ones that continue to thrive. The formula for success is clear: Unify the leadership team around a clear vision Successful agencies have leadership teams that align on a distinct ambition: to drive their clients' growth through creativity. Clarity of purpose ensures that business decisions, creative output and talent investments ladder up to a singular mission. When leaders set this vision and commit to it, agencies build stronger client relationships and a more cohesive internal culture. Be a product company, not a service provider The best agencies understand that their product is the work that drives growth. This mindset shift ensures that everything is optimized for delivering outstanding creative output rather than simply executing tasks. Agencies that focus on continuously improving their creative product, rather than just servicing, build stronger brands and drive long-term success. See all of Ad Age’s 2025 Agency A-List winners here Empower leaders to make bold decisions Agencies that thrive don’t just hire great talent; they create conditions where that talent can take risks, innovate and push boundaries. This means giving leadership teams the freedom to invest in what’s best for their agency and clients, rather than being constrained by rigid corporate structures or short-term financial pressures. When leaders are empowered to act decisively, they foster stronger creative cultures and better client partnerships. Demonstrate value and be compensated for it New technologies and platforms have enabled agencies to demonstrate the economic power of their work. Agencies must continue to lead with effectiveness and demonstrate the real benefits of great work at every turn and across every part of the client organization. More critically, agencies must prioritize new commercial models that provide clients and the agency itself with a win-win, when the right results are achieved and successful. The advertising industry will continue to evolve, but one thing remains constant: Creativity to drive growth is the reason clients choose to work with us. In an age where advanced technology, AI and systems can enhance targeting and personalization at scale, creativity will be the key differentiator going forward. Agencies that embrace this reality—by investing in their talent, protecting their creative culture and aligning around a clear vision—won’t just survive the changes ahead. They will define the future of our industry. Data-Driven Marketing Playbook Join us May 22 in NYC to explore how data powers marketing Learn more here

How creative agencies can thrive despite industry fragmentation

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