Tom Head's Linkedin Analytics

The agency world has 18 months left. Maybe less. Sir Martin Sorrell's S4 Capital just reported an 11.4% drop in Q1 sales - a canary in the digital coal mine. It's not just economic headwinds. It's not just Trump's tariffs. It's that your clients are quietly bringing work in-house. With AI tools. We’ve seen this very publicly over the past few weeks with Dualingo, Shopify and Klarna all taking an AI first approach. The reality today is: • A junior with Midjourney can replace multiple £50-£70K designers • AI can draft campaigns faster than your team (who’s reinventing the wheel every time anyway) • AI analytics outperform your insights department Sorrell, ever the optimist at 80, promises things will turn around in H2. But the trend is clear: brands don't need agencies for tasks they can do themselves with AI. So what's an agency to do? 1. Be brutally honest about what clients can now do in-house Don't sell services they can easily replicate with AI. 2. Double down on strategic thinking AI can't replace genuine business understanding. 3. Use AI in an advanced way Create demand by using AI tools to deliver more value. We've been teaching teams how to use AI effectively for 18 months. The results? They still need agencies - just for different things. The old model is dying: Creative concept → Design → Media plan → Traffic → Report The new model is emerging: Strategic insight → AI workflow design → Internal capability building → Outcomes Agencies need to go from fighting this shift to leading it. Follow me for more on navigating the changes in the agency and job market created by AI.