A brilliant strategy will always beat faster and cheaper, if clients are willing to invest in quality

Abigail Crosby, Managing Director, APAC – Demand AI

The best agencies add value with long-term strategy, unique partnerships, and deep market knowledge. Their challenge is demonstrating that value, and building operating models that reflect it, in a world that wants faster and cheaper.

Many agencies did not have a great 2025. In between driving down margins to secure new business opportunities, and the ever-present possibility of restructures, it’s been an unsettling time for agency folk.

It might feel like the shine has been taken off what traditional agencies are so brilliant at doing, partnering with their clients to delve into the depths of media opportunities and strategically planning how best to facilitate key outcomes.  Time has become a precious commodity, one that no one wants to pay for. It can become a race to plan and execute strategies without the time to build out a fully rounded proposition.

Showing value through great people

You will meet some of the smartest people working at agencies. Deep subject matter specialists bringing years of expertise, and those who have worked across every media you can think of and still know every new partner and opportunity coming to market. The challenge for their employers is showing their value. Agencies need time to onboard clients, understand their business, and drive forward a truly valuable proposition.

Agencies should know more about media and the advertising landscape than any single-entity marketing team. Clients want to work with agencies because they understand, advise, and strategize.  They can bring together a roomful of knowledge and expertise at the drop of a hat and build a winning strategy. Yet agencies make money only by selling a transactional service when that media plan goes to market, which ultimately drives the agency value down.

And this is why many agencies are continuing to struggle into 2026.

Undervalued and under compensated for services that can move the needle for clients. Offering the most value from services they aren’t making money on. The agency model often places strategic thinking and long-term partnership planning only as added value or a sweetener during the pitch.

It will be harder for agencies to secure contractual retainers for these services because they come at a higher cost to the client, due to the level of expertise being sold.

Long-term strategy

The agencies that thrive in this ever-changing space will be those that value their strategic offerings. Agencies that understand how they can help clients for the long term and operate a model to reflect this. It’s a tough model to crack when everyone wants cheaper and faster and is not always able to value time and experience.

How agencies can succeed

For agencies to manage demands on their pricing, services, and timelines they will need to shift into solutions that allow them to bundle up outcomes under managed services, inventory resellers or elevated partnerships and of course through automation and AI.  That’s strategy, market knowledge, and efficiency.

This will allow them to demonstrate value and charge a premium for market experience and multidisciplinary skills and expertise. It will incentivise all parties to focus on long-term successful strategies for their clients.

Find out how Demand AI can support both customers and agencies.