What happens to agencies when scarcity disappears and AI can do almost everything?
In this episode I sit down with Tom Salmon, Co-Founder of Agency by Agency, to unpack what's really happening inside the UK's 25,000-strong agency market. Tom has mapped the entire sector, and the data reveals some surprising shifts. We examine if the challenges that agencies are facing are a temporary downturn or a permanent reset driven by economic uncertainty, media abundance, and AI. As execution becomes easier and more automated, we ask a bigger question: where does true value now live?
Tom shares what the fastest-growing agencies have in common, along with why scarcity might be the most important strategic lens of all. We debate whether algorithm-driven creativity will dominate, or if bold, human-led thinking will become even more valuable. Tom reveals why fewer agencies are being formed, how nano-agencies are thriving, and why the traditional "scale by headcount" model may be fading.
Topics covered during this episode include:
Why the traditional agency build-scale-exit model may be becoming outdated.
Why economic cycles feel semi-permanent rather than like temporary fluctuations.
How AI permanently altered execution speed and client expectations.
The impact of media abundance in creating peak marketing complexity.
Why performance marketing's dominance may be losing momentum.
How scarcity originally justified the existence of agencies.
The importance of human oversight in culturally sensitive campaigns.
How trust and brand credibility remain difficult for AI alone.
The rise of influencer, retail media, and commerce marketing specialists.
Why generic web development agencies face saturated competition.
The declining rate of new agency formation since the pandemic.
How nano-agencies operate flexibly without scaling headcount.
Why experiential and out-of-home channels are growing in strategic relevance.
Why becoming indispensable transforms client retention and growth.
Don't miss this data-driven deep dive into where agency value is truly heading!
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