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Marketing Agencies

Clients can make the asset themselves now. They won’t keep paying agency rates to produce it.

Sell them what they can’t make: how they show up in ChatGPT and Perplexity. Edelman’s GEOsight and 5W already do.

What firms like yours are designing in the Workshop.

Most firms feel the itch and start experimenting: a few tools, a pilot, a project that looked promising on paper. The expensive version is finding out a year in that clients won’t pay for it. Whether you’re still deciding where to start or already two pilots in, the Workshop narrows what you take to your clients before you commit more budget to building it.

Every engagement is different. Your team’s domain expertise is the input. These are the kinds of offerings marketing agencies leave with, specified and priced. Your team tests them with named clients, then builds what earns it.

The three shifts behind these offerings

83%

of marketing leaders would cut agency spending if they could fully automate content.

Typeface, via eMarketer 2025

29.6%

of US ad spend now runs through the Big Six holding companies, down from 44.6% in 2019.

Advertiser Perceptions

85%

of agencies now prefer retainer work over projects, and engagements are running longer.

SparkToro, 2025

Questions

Not the ones that change what they sell. 60% of marketing leaders spent less on agencies in 2025 as a direct result of AI (Typeface via eMarketer), yet 52% say they want better ideas, not lower fees (Agency Edge 2026). Clients aren’t dropping agencies; they’re refusing to pay agency rates for production AI now does cheaply. Growth is going to agencies that sell strategy and outcomes instead of billable hours.

60% of marketing leaders spent less on agencies in 2025 because of AI (Typeface Signal Report, 2025). S4 Capital, parent of Monks, reported H1 2025 net revenue down 12.7%, with headcount cut 8.9%. Its CEO stated: “The reality is AI is eating the agency business.” 83% would cut further if they could automate content creation in-house.

AI-visibility audits and brand-monitoring subscriptions covering how clients appear in ChatGPT and Perplexity. Edelman shipped GEOsight; 5W ships its own version. AI content-governance retainers where the agency owns oversight while the client generates the volume.

The deliverable model is breaking. One in four North American agencies has shifted to fixed-fee pricing (Forrester / Dentsu, Adweek May 2026), and 85% of agencies now prefer retainer work, up from 81% a year earlier (SparkToro). Search Engine Land reported in April 2026 that agencies are being squeezed from both sides: they automated delivery, but their clients adopted the same tools.

Ad spending grew 8.6% the year holding company revenues fell 1.2% (eMarketer). The deliverable layer is moving in-house. 83% of marketing leaders say they would reduce agency spending further if they could fully automate content creation. The agencies still winning are the ones selling visibility and governance, not asset volume.

15% of agency jobs are forecast to be eliminated in 2026 (Forrester). Most agencies have adopted AI tools internally. Revenue hasn’t changed because they haven’t changed what they sell. The efficiency advantage evaporated when clients adopted the same tools.

Agencies that reduced their services grew 13% at 30% net margins in 2025, against a 7.5%-growth, 13%-margin field (Promethean Research, 119 agencies). The math works when the contract is sold differently. It doesn’t when AI is bolted onto deliverable-based billing. The savings get passed through to clients as discounts.