From scale to agility – rethinking the agency model

The creative agency model is once again evolving, with businesses increasingly seeking deep specialisation. Crucially, size and geography are no longer defining factors for long term success.

We hosted the Brighton creative community roundtable roundtable on 26 February for 16 creative agency chiefs, funders and advisers to discuss the opportunities and challenges facing creative businesses on the south coast.

The five years since the Covid pandemic and the seemingly unstoppable rise of AI have changed the agency landscape dramatically, participants shared, with agency agility, client expectations and funding growth being the headline themes.

There has been a marked shift away from the traditional ‘full service’ agency towards leaner, more agile models offering deep expertise and sector specialism. Smaller teams are complemented by wide networks of freelance, ‘partner’ agencies – or ‘collaborators’ – bringing specialist services clients need.

This does not mean, however, talent is overlooked. Whilst top-tier talent might be in short supply locally, securing the right people remains critical. Agency chiefs recognise that where models combine in-house talent and freelance expertise, developing a supportive and collaborative culture is critical. B-Corp status and employee ownership trust structures play a role.

The ability to demonstrate strategic value has always been fundamental to agency leaders – and never more so as AI reshapes every aspect of corporate life.

Where once creative agencies may have built a model on simply ‘doing stuff’, today agencies must position themselves as ‘trusted partners’, challenging client thinking, and helping them grow their businesses. Demonstrating a clear return on agency spend is critical.

Creative agencies have been quick to lean in and take advantage of AI, building AI capabilities that bring both efficiencies and new revenue opportunities. AI is not, however, a substitute for strategic thinking, human creativity and the ‘craft’ agencies bring.

Funding and growth sparked lively debate and ultimately a degree of consensus. Traditional funding models rely on organic growth and bank debt. Yet as private equity investors explore the sector, and with grant funding increasingly available, it raised the question: ‘Could we grow faster with deeper pockets’? 

Whilst potentially attractive, the consensus was that external funding only makes sense when aligned with a clear long-term vision. Where agencies are building sustainable business models driven by reputation and expertise, external investment is questionable. Where a defined exit or acquisition is part of a longer-term plan, then it should remain on the table.  

What united agency leaders at this event was a clear hunger for independent advice, support and robust challenge and peer learning to better help make the sometimes difficult but critical decisions. 

If you’re a creative agency leader seeking independent advice or strategic support to navigate today’s evolving landscape, please do not hesitate to get in touch with one of our experts.