Laura Agricola.
The AdNews end of year Perspectives, looking back at 2024 and forward to next year.
Laura Agricola, Strategy Director, Keep Left
Temperature check: According to IBIS World, the size of Australia’s creative agency industry has declined 0.3% per year on average, over the last five years.
Real feel: Mayhem, with a side of opportunity.
From where I sit, things are shifting fast. Talent is on the move, client and agency restructures are happening weekly, and agencies are merging quicker than the on ramp of a freeway.
The workforce? AI looms over junior roles. Strategy? Do more, think less. Production budgets? Trimmed down to the bone.
The pitch frenzy has never been fiercer. More agencies, fewer opportunities. Marketers are feeling the pinch too, with the agency-of-record model fast disappearing, and creative services moving in house (In-House Agency Council research suggests 78% of marketers are now using some kind of in-house agency).
All of which leaves every agency of every kind to ponder their existence like philosopher Jean-Paul Sartre, but on a tighter deadline.
2024 has thrown us into a new game – one we’re learning to play fast. We've made tough choices, chased quick wins, thrown in some freebies to hold onto our retainers.
But hey, we’re still here. Our rallying cry? Stay alive for ‘25.
Now the big question is “what’s next?”. It’s hard to know. I’m not an economist. Or a clairvoyant.
But I am a strategist and believer in self-fulfilling prophecies (expectations shape actions and actions shape outcomes yada yada). So, here’s seven ‘predictions’ that will maybe, just maybe, turn the tides in our favour.
- In-house creative won’t be a zero-sum battle
The nature of how brands take creative in-house will evolve. While building internal teams brings benefits, groupthink, stretched resources, and corporate culture kill creativity. As such, hybrid models will rise as brands realise that external agencies still have the creative edge and there’s absolute value in tapping into their talent to support inhouse capability. So, the partnership game will get stronger – because we’re better together.
- Human + AI will become the ultimate team
Demand for AI solutions isn’t going anywhere. We will be done with ‘cautious experimenting’ and embrace AI as a legitimate sidekick. Agencies will ditch the busywork letting AI handle the tedious tasks that bloat the timesheets so we can focus on the magic: originality, emotion, genius… the stuff our clients value. The result? Faster processes, smarter workflows, and healthier margins.
- We’ll reclaim the commercial respect we deserve
We can’t survive if we continue to maintain relationships at the cost of commerciality. Agencies will shift from seeking clients, to partnerships grounded in shared values, mutual respect and an 'Ain't No Mountain High Enough' anthem – because no challenge is too big when you're on the same page (or playlist). More of us will say ‘nup’ to the goodwill service model which undercuts our value by offering too much for free during pitches, and the ‘master and servant’ relationship that sees us over-delivering to stay in favour.
- We will rethink fee models
Rory Sutherland wasn’t wrong when he said agencies took on consulting's worst habit – charging for effort, not value. Moving forward, expect more agencies to adopt value-based pricing; profit-sharing, equity, and performance-driven models. Why? Because we bring unimaginable value to brands, so aligning compensation with impact, rather than hours on the clock, benefits everyone.
- Brand and performance will finally kiss and make up
Brand and performance have been bickering for years, but they’re about to get a whole lot closer. Tracksuit + TikTok’s Brand Advantage Report argues brand awareness drives up conversion rates. Telstra CMO Brent Smart agrees, moving towards a 50/50 split as “Your CPAs look better when the brand is strong”. Get ready for a power couple you didn’t see coming.
- The great return to the office will be more fun.
The debate’s back, with a tug-of-war between the freedom of remote work and the connection and structure of office life. With grace and flexibility at the core, agencies will coax us back with perks like kombucha on tap, tennis lessons, and a virtual golf course. Finally, Covid juniors will learn by osmosis – watching, listening, and absorbing from the pros.
- The ‘boys club’ is on notice.
Zoe Scaman’s “Motherload” report and the all-male Campaign Brief list set off a firestorm that’s not dying down. From here on out, agencies will be held to a higher standard – it’s no longer about optics, but real action. Expect a systemic rehaul in how we promote, support, and elevate women in leadership, and the industry partners we back and bet on.
Sure, we’ve been knocked down – but we’re not out. All we need is a little nerve and a lot of action.
Stay alive for ‘25.
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