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If you’re a marketing professional who wasn’t aware of the wave of mid- and senior level layoffs happening across agencies like R/GA and Huge, WPP’s Ogilvy and Grey, and Havas, don’t feel bad. It’s probably because they’re doing it very quietly.
But what’s not so secret is that the agency framework is changing, fueled by shrinking client budgets and a unique shift to scalable project work. This restructuring reflects larger changes in the business landscape of advertising, where agencies must align their operations with evolving client demands and expectations. As agencies try to remedy the loss of major clients, they’re seeing just how cost effective, yet high yield they can be — at the cost of some major restructuring.
The good news is that agencies can find ways to address the biggest problems disrupting the evolving marketing landscape. And Assemble has those solutions. We’ve kept a pulse on where the future of creative teams is headed, so we can help your agency become more efficient and effective. Keep reading to find out how.
Understanding the Current State of the Ad Industry
The ad industry is going through a massive transformation, driven by changing client needs and rapid tech advancements. According to Ad Age, this transformative period is all about consolidation, with companies adapting to new challenges and grabbing fresh opportunities to be leaner and more efficient. The surge in digital advertising has ramped up the demand for creative and strategic services, prompting agencies to start integrating today's most impactful solutions and technology to stay ahead of the game.
These days, it's less about cranking out content and more about the power of ideas and flawless execution. Sure, we're trying to get as much content our there as possible, but with more people gaining access and knowledge into these new AI solutions, being authentic, original, and impactful is more important than ever. So clients aren't just looking for agencies to churn out content; they want partners who can deliver innovative solutions and strategic insights — quickly. This shift has completely changed how clients and agencies work together, creating a collaborative environment where access to data and insights is key.
But this transition has come with even more challenges to the status quo. The industry is seeing a wave of layoffs as companies streamline operations to cut costs and boost efficiency as the means of traditional marketing and digital platforms are no longer making the cut. However, these layoffs aren't necessarily a bad thing; they show the industry's resilience and ability to adapt. Agencies are rethinking their structures and processes to better align with the current market demands.
To stay ahead, creative agencies are making big investments in AI, data analytics, and digital services. These technologies not only beef up their service offerings but also help build stronger, more insightful relationships with clients. By learning and mastering the latest tools and trends (something we really pride ourselves on here at Assemble), agencies can provide the innovative solutions and strategic thinking that clients need to not only hit shrinking deadlines, but also really stand out in today’s fast-paced advertising landscape.
In a nutshell, the ad industry is in a constant state of evolution. Agencies need to be proactive in adopting new technologies and services while focusing on building strong client relationships. This approach will allow them to deliver the innovative solutions and strategic insights necessary to remain competitive in an ever-changing industry.
The Problem: Advertising Clients Are Cutting Back
Doing more with less is the theme of this past year. And that's because clients are facing increased creative output demands, while stuck with shrinking or unchanging budgets. Today, brands are realizing they need tons of assets to create really strong campaigns, but in a volatile landscape, it's hard for marketers to see what the future will entail, so instead of renewing their agency contracts, they're switching to short-term, project based commitments.
The Solution:
The only problem with this mentality is only more instability and challenges forecasting for longer-term needs. And if not done correctly, it can also lead to the risk of inefficiencies from a revolving door of partners or contacts. Agencies need to be able to be a complete partner to their clients; one that can deliver in any capacity, while providing their full scope of their needs. Changes in client needs influence what clients are willing to pay for, often leading to layoffs and staffing changes. By working with a production partner, they can address the gaps in their own offerings without growing their own teams or investments significantly to do it.
The Problem: Compounding Inefficiencies
Speaking of inefficiencies — thanks to these client cutbacks, many agencies are realizing they face a plethora of their own. The nature of agency work, which relies heavily on collaboration and client interaction, means that what may have worked in the past is only being exposed with increased demand. So as their clients make strategic moves, they’re only more eager to tighten up their processes and optimize their output. But they often don’t know where to start.
The Solution:
Have an experienced production partner. While more assets are the new demand, not all agencies are structured to handle this mass creation. In the current advertising landscape, ideas come to life through innovative strategies and creative solutions. A creative studio will have the technical wherewithal to uncover the inefficiencies in your creative process and eliminate them using the right technology and automations. Whether it’s lack of internal workflows, tedious and repetitive code writing, continuous resizing, etc., these speed bumps are only costing you and your clients money they no longer have the flexibility to spend.
A team like Assemble has actually created our own tools and boilerplate templates that allow us to automate various aspects of the production process to expedite our timelines and reduce our labor needs. We are constantly adding new automations to expedite large-scale banner campaign creation, generating customizable design blocks, and creating easy-to-use email builders that support code snippets generated by keywords — all of which make us faster for our clients without jeopardizing personalization.
The Problem: Workflows are Disconnected
As agencies scale, it’s not uncommon for teams to ‘plug and play’ various aspects of their workflows, especially in response to recent events like layoffs that occurred last week. When new clients are pouring in and teams are under tight deadlines, these areas are often quick to get the bandaid treatment, offering fast fixes that lead to long-term inefficiencies. You simply can’t automate or streamline a process that isn’t connected to begin with.
The Solution:
Review, analyze, test, redesign. We get it — easier said than done. But that’s why we created a program to help. Assemble’s CreativePulse can help you revamp your workflows by offering a comprehensive approach to diagnose and elevate your entire creative processes — or any individual aspect of it. Pick and choose our services based on your specific needs — anything from in-depth analysis to creative tool implementation or comprehensive optimization. We know everyone is challenged by their budgets this year, so we make it easy to maintain control of our engagement every step of the way and only invest in exactly what you need to improve your process in the long run.
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The Problem: Too Many Resources, Not Enough Budget
Holding companies are owning a majority of the recent layoffs. And that's for a simple reason: Unlike their independent counterparts, these companies have major external stakeholders to answer to, giving them a lot less flexibility in how they go about it. These companies are used to a ‘cost reduction leads to increased margins' strategy, so they're cutting their resources. The days of hundred-person creative departments are over, so as clients look for a creative partner, they're not as interested in a long-term, big-team partnership — but simply a partner that can deliver.
The Solution:
Your agency doesn’t have to have everything in house. That’s very expensive — and frankly, outdated. Your clients are seeking a more flexible, project-based partner, and so should you. As the markets change, what clients are willing to pay for shifts, leading to constant hiring and layoff cycles that only result in more inconsistencies and a lack of focus on innovation that your clients seek. Flexibility and agility is going to be crucial to brands with shrinking budgets, so that’s what you have to provide. And how you do that is tapping into a creative studio that can efficiently produce high volumes of work without compromising quality or creativity and can optimize your workflows to meet demanding deadlines.
The Problem: Out of Touch Advertising Creatives
Many of the financial qualms of agencies today also stem from old school mentality from leadership. It’s no surprise the demand for innovation and fresh ideas are higher than ever, and that means having the knowledge of what’s possible and the talent that can bring ideas to life in the current advertising landscape. Being on top of the latest technology and tools is going to quickly set agencies apart from the pack this year.
The Solution:
If you don’t have this type of arsenal on your internal team, go find it. A lot of creative production partners can deliver on the assets and products you need. But simply taking orders isn’t really a partnership, is it? Agencies need a creative studio that’s not only on top of all the latest technology and tools out there, but understands how they can fit into your process and improve your output. They uncover solutions and make recommendations that you may have never considered. And they have a large network of talent, knowing what skills to look for and how to vet candidates that fit into your work style — making the deliverables higher quality and the process more enjoyable.
If you’re looking for a solution to overcome the unique challenges that come with today’s “do more for less” mentality, contact Assemble to discuss your goals today.