Oliver Duffy-Lee's Linkedin Analytics

The role of the brand is changing fast. The role of the agency is about to follow. In 2025, there’s no such thing as a neutral brand. When geopolitical, environmental and social volatility is constant… Silence gets interpreted as indifference. And for many customers, silence speaks louder than brand campaigns. The old model of corporate communications said: “Stay safe. Stay neutral. Avoid picking sides.” But today, brand inaction is often seen as a choice. According to Edelman’s Trust Barometer, 63% of people expect CEOs to lead on societal change… That expectation now filters directly into brand perception. And for CMOs, that creates a deeper challenge: It’s not just about what your brand says. → It’s about how your operations behave. → How your hiring practices hold up. → How you act when nobody’s watching. Because trust is no longer built through messaging alone. It’s earned through systems, policies, and delivery. You can’t sound caring and scale indifference. You can’t run purpose-led copy over a disengaged culture. This isn’t about taking a stance on every issue. It’s about understanding that neutrality itself is a signal, and increasingly, not a good one. → For agencies, this shifts the ask too… It’s no longer about finding the right words. It’s about helping clients show proof. Helping them align comms with conduct, brand with behaviour. Because in this climate, the brief isn’t “say it well.” It’s: “prove that we mean it.”

The best agencies aren’t defined by what they do. They’re defined by how close they sit to the client business. Domain expertise still matters… But it’s not a differentiator. What sets the good from the great agencies is proximity… → Not to the marketing team. → But to the commercial engine. This is shaping how agencies set themselves up… We’re seeing this “front-end/back-end” structure emerge: → A lean, senior team at the front, delivering world class strategy → A flexible back layer of partners, freelancers, and platforms to scale delivery A fellow agency owner of mine summer it up perfectly… ‘We want to be leading on strategy and competitive in delivery’ This is the strategy we start to see more and more And critically, these teams are shaping the brief, not waiting for it. This is what proximity looks like in 2025: → Sitting inside the client’s key business strategy → Spotting opportunities before they’re scoped → Orchestrating execution, not owning every piece When that happens, domain becomes secondary… Because you're no longer just the best at one thing. You're the partner who knows why it matters to that business. And… You’re not just harder to replace. You’re part of the business itself.

I don’t see the agency level of panic surrounding AI in the coaching and consulting space… Here’s why I think that is: Coaches and consultants seem to be pretty calm about the whole ‘AI eating our business model’ thing… Agencies on the other hand are flicking between… We’re f**cked and… AI will never be able to replace us… Back to Ah sh*t again… There are 3 reasons I think Coaches and Consultants are right to be more calm: 1. They own their IP Coaches and consultants are experts at packaging their own methods and approaches into engaging and compelling IP… Agencies all have their own, unique approaches… But they’re awful at packaging it… It tends to come out stagnant and watery, like ‘Find, Win Grow’… IP is crucial in a world where HOW you deliver your work is more compelling to prospects than WHAT. It’s time for agencies to actually step up and start. 2. They’re lean Coaching and consulting businesses are incredibly lean. When I ran Authority Agency, and we had a coaching side to the business, I networked with coaches that ran £3m+ businesses by themselves with 2 VAs - amazing margins! Lean businesses can stay profitable and stack cash… In an environment like this, where a lot is changing, both of those things are incredibly valuable. Does that mean agencies should strip down? No. But it means paying attention to contribution margin is crucial. Spencer Gallagher has maintained for years that salaries should be no more than 65% of GP Maybe that comes down to 60% - but it shouldn’t stray over. 3. They have a narrow client base This is actually a plus and a minus right now. Plus is simple… You can dial in easily to that client set’s reality. You can see the impact of AI and how to adapt very quickly. The minus is you become fairly vulnerable. In a volatile climate, diversity is a strength. Plus you lose the extra learnings you gain from exposure to a wide range of businesses and industries. Still, it gives coaching and consulting businesses confidence in times like this. Would I rather be running an agency or a coaching business right now? An agency - all day. But that’s because I love the agency work - and having tried the coaching model, I know it’s not for me… Not now anyway. Which model is best set up to thrive now? Both are strong… But those 3 fundamentals above (especially 1 and 2) are big advantages for coaches right now.

Agency pricing is about to become more creative than the work itself. For years, the industry defaulted to retainers and hourly billing… simple, predictable, familiar. But as AI, automation, and modular delivery reshape the work itself, clients are rightly asking: "Why are we still paying like it's 2012?" What’s emerging instead is a more creative, commercially aligned set of pricing models… Each designed to reflect the value delivered, not just the time spent… And no… The answer isn’t ‘Value-based pricing’. Here are some options: 1. Performance Based “We’ll take a percentage of the uplift we generate.” Fees are tied to specific business outcomes e.g. revenue lift, conversions, pipeline contribution. Ideal for performance marketing, product launches, or campaign-linked growth. → Upside: Aligned incentives. Shared risk. High-margin when outcomes hit. → Challenge: Attribution is complex. Requires strong tracking and trust on both sides. 2. Performance Bonus / Malus “You’ll pay more if we beat the target… and less if we don’t.” A guaranteed base fee, plus a bonus (or penalty) tied to defined KPIs. Often used in media buying, conversion optimisation, or brand health projects. → Upside: Motivates accountability without risking full margin. → Challenge: Needs clear success metrics agreed upfront, and mutual transparency on data. 3. Accelerator Model “We’ll take a percentage of revenue… but only if we have the levers to affect it.” Compensation is tied to performance and contingent on the agency’s ability to shape key business levers (pricing, funnel, product-market fit). It’s outcome-based with governance attached. → Upside: Strong alignment, higher upside, real partnership. → Challenge: Requires trust, cross-functional access, and very clear rules of engagement. 4. IP Licensing “You’re not buying our time… you’re licensing our tools.” Clients pay recurring fees for access to proprietary models, templates, data platforms or software built by the agency. Often paired with strategic advisory support. → Upside: Decouples income from hours. Builds recurring revenue. → Challenge: Requires IP worth licensing—and operational maturity to support it. 5. Brand Equity Participation “We help build the brand, and share in the value it creates.” Instead of traditional fees, agencies tie part of their compensation to brand valuation growth, investor milestones, or phantom equity. It’s less about media performance, more about enterprise impact. → Upside: Long-term alignment. High-upside potential. → Challenge: Works best with venture-backed or challenger brands; harder to structure with legacy clients. By 2030, agency CFOs may need as much creative agility as creative directors. Clients don’t want cheaper. They want fair, risk splitting partnership. Pricing models that reflect how work is actually delivered, measured, and valued today. And the agencies that nail this will be more relevant…. And structurally more resilient.

The best thing about the AI rush is it’s turning “Nice to haves” into essentials… Things that used to be a good idea for an agency: - Having a world class strategy offer - Being more than a safe pair of hands - Building deep and meaningful client relationships - Developing a wide delivery specialism - Brief making not taking Are all now essential in the time of AI. Without those you’re slowly losing relevance and competitiveness… Agree? Happy to be challenged…

Most agencies position themselves like this 👇 [Service] that [does a thing] ‘Paid ads that deliver ROI’ ‘Creative that cuts through the noise’ ‘Blah that blah blah blah blah…’ The lack of differentiation is suffocating. Can you imagine if the person that created fire launched it as: ‘Thermal optimisation solution that delivers enhanced environmental warmth’ Or what about the genius that finally cracks teleportation… Launching with the proposition: ‘Speedier travel that gets you from A to B in no time at all’ The agency world needs to do better. A few things that can help immediately: 1. Stop defining your proposition by what you do No-one cares. In fact, more than that - everyone knows! You’re an agency… If you’re a PR agency, we know you’re good at PR. Same if you’re a creative, design, development, AI… Whatever you are, we know you’re good at that thing! Much more interesting is HOW you execute that service… (See point 3) 2. Start defining your proposition by your clients Who do you create your best results for? Whoever that is… That is the core of your proposition… And this doesn’t have to be an industry (in fact, I would now advise against that…) But there are ways to define it… What do your clients care about? What do they have in common? The sooner you can call out your perfect client, the sooner you get close to an interesting, distinctive position. 3. Introduce HOW you deliver before WHAT How you deliver is more important than what… Especially when it comes to top of funnel and trying to differentiate. Almost evert agency I know has a unique approach to their work - their IP. Hardly any talk about it… Introducing How you deliver into your positioning is interesting for prospects. 4. Position against the outcome, not the output Stop selling the thing you make and start selling the transformation you create. Your clients don't buy websites, campaigns, or strategies. They buy growth, relevance, competitive advantage. What fundamental shift happens in their business after working with you? That’s an attention grabbing proposition. 5. Own your weird That thing you do differently that you think might be too unconventional… Is probably your biggest asset. Stop trying to sound like you ‘should’. Start embracing what makes you genuinely different. The collective sameness isn't just making individual agencies invisible… it's eroding trust in the entire industry. When every agency sounds identical, clients assume we're all delivering identical results. We're training the market to see us as commodities while wondering why price always comes up in new contract negotiations… Time for a change… Or we'll continue being the marketing equivalent of calling Flying Cars ‘Elevated transport solutions…’ Revolutionary work hidden behind evolutionary language.

This is why Enterprise clients are the slowest to adopt AI across their marketing teams… The CMO of a leading billion $ business told me this week: ‘We have agencies around the world doing work that should be done by AI… But I’ve got lots of more important things to fix first’ And it confirmed something I’ve considered for a year now: → Enterprise clients buy agencies time Businesses that span the world are incredibly complex. The challenges they have to fight are long, meandering projects that involve hundreds of team members around the world at any one time… For one product launch we led for a global client this year, we held client workshops with up to 45 people on one call. These projects are beasts. The stakes are incredibly high. The outcomes hold the keys to billions of dollars in income. Do they have time to systematically execute a programme of AI adoption throughout their global teams? No… For a number of reasons: 1. The sourcing If you’re embedding AI tools across your global marketing teams, you’re going to want to get a good price (to say the least)… That involves a widespread search, vetting, pitching, negotiating and the onboarding. You could say that purchasing can handle that - but they’re already stacked! 2. The implementation Then you have to interrupt well established work flows that every local market team already has in place. Yes, you’re making things more efficient… But not immediately. To implement is to interrupt. Across your entire global operation, you have a period of interruption… That’s not going to fly in an economic climate that is asking CMOs to deliver more for less (I know it should, but the friction is too painful). 3. The adoption Then you have to transform the work habits of your entire global team. Not only that, but you have to shield them from news like McKinsey adopting AI across the board and then cutting 10% of their work force. You can to build a culture of psychologically safe adoption… And guess what? That takes time… And a ton of patience. For agencies with enterprise clients, it buys you time. It gives you the breathing room to do those 3 above steps, but in a much quicker, smoother and more agile way. It allows you the space to create new levels of quality and efficiency before your clients can match it. This is crucial. And is why enterprise clients are the number 1 way to insulate from the AI assault on the conventional agency service delivery model. What’s your take? Agree or challenge?

“Pick two” doesn’t hold up anymore. For years, agencies hid behind this Venn: → Fast → Good → Cheap Pick two we said. Clients were told it was impossible to deliver all three. And for a while, that was mostly true. But the model is shifting. Quickly. We now know we can offer all 3… Even if most don’t want to admit it. Take simple design. Once seen as a valuable creative service, it’s now often delivered fast, affordably, and at decent quality via retainer studios, offshore setups, or AI-first tools. Copy and video will follow. Code’s already part-way there. This is about where agencies still hold value… and where they don’t. Despite what people want to believe… AI won’t stop at execution. Strategy, too, is already being simulated in parts. So how do agencies insulate from this?? They won’t just move upstream. Simply bolting Strategy into your deck and saying everything is ‘insight-backed’ won’t save you… They’ll move into complexity. → Into organisations where the real challenges aren’t briefed, they’re hidden and need discovering. → Into spaces where five stakeholders disagree and clarity is political. → Into problems that are too high-stakes to outsource, too ambiguous to automate. And critically: They’ll build deep, trusted partnerships inside larger, slower, high-risk businesses. AI might match your craft. It might even simulate a strategy. But it still can’t navigate a business model pivot or align a global team around a risky growth bet. That’s where insulation lies for agencies right now: Big enterprise clients that need true partners to solve business critical problems. Not because it’s strategic. But because it’s contextual, relational, and consequential. Clients don’t just want assets. They want answers. And alignment. And accountability. The old model I entered 12 years ago, where agencies waited for the brief and executed, is fading. And honestly? It’s about time.

There are two things agencies need to double down on right now. And neither of them are delivery. Not design. Not copy. Not code. Those are all changing on a weekly basis. AI, offshore studios, and production platforms are doing what agencies used to do… only quicker and cheaper. But while delivery gets more interchangeable, two things are becoming more valuable: 1. The quality of your relationship 2. The sharpness of your strategic thinking Because when you’re embedded deep in the client’s business, And your lens is commercial, not just creative… The delivery layer stops being the point. → A strategic core that’s tightly embedded in the client’s world → A delivery team that flexes, scales, and adapts to what the client actually needs And here’s what’s powerful about that model: The stronger the relationship, the better the strategy. The better the strategy, the smarter the delivery decisions. When the agency is inside the business, not just reacting to briefs but helping shape them, everything downstream gets sharper. In this new model, the question isn’t: “What can we make for you?” It’s: “What’s the smartest thing to make, for the outcome you need?” And that only comes from being close. Really close.

A great way to see if something is a differentiator or a simple expectation is to reverse it: Perceived differentiator: ‘We deeply care about our clients’ The opposite: ‘We don’t really care about our clients’ It’s absurd… no one would say that, which means it’s not a differentiator but an expectation. You see it all the time: We’re v creative We’re totally results focused We work as an extension of your team Expectations, not differentiators