Agency models are changing in response to a whirlwind of consumer behaviour shifts, the advance of AI, and a growing trend for social-first marketing campaigns.
In fact, the pace of change is as fast as it has been for at least two decades and shows no sign of slowing. That was the view of Ingenuity+ experts as we hosted a packed panel event for our Marketing Procurement Club.
In front of an audience of procurement, brand and agency professionals we quizzed a line-up of senior experts to hear how they believe brands’ agency models are evolving, and more on the headwinds driving change.
Our absorbing discussion featured some proprietary insights and occasionally controversial comment. As a result we’ve anonymised the panel’s insights in the following summary, allowing us to share the experts’ fascinating views with a you, our CMO Engagement Programme Members.
Let’s take a closer look at five key considerations when trying to pinpoint the optimal agency model as it continues to be reshaped by current events - most likely for good.
1. Change is no longer a surprise - it’s expected
A show of hands from the eager audience suggested a sizeable majority of attendees had either changed their agency model or expect to in the very near future.
With this in mind the panellists were challenged to define the optimal agency model. All agreed there is probably no neat, single definition at present as the marketing landscape shifts and buckles under seismic external pressures.
Yet there was consensus that agencies require two essential elements at this time: flexibility and an intimate understanding of the client business.
On flexibility, a marketing procurement consultant observed: “A collective understanding of what’s true in the market today could well be out of date tomorrow. So, whatever the business and its agencies build needs to be agile with the whole ecosystem able to flex as your requirements change. Chemistry - built on transparency and honesty - is key.”
In response, a global full-service agency leader agreed: “The optimal model allows agencies to get under the skin of the business, as a true partner that knows the real business needs. Only then can the agency adapt to support the organisation.”
2. Coping with accelerated change won’t be easy
Procurement’s influence on the relationships between marketers and the agencies they appoint is prominent. In research conducted during Q3 2024 by The Ingenuity Group more than 3 in 4 (76%) UK-based CMOs revealed their organisation’s procurement team is involved in pitches.
It’s no wonder, then, that the agency model must now take far more into account than creative strategy these days. One of our panel participants, a head of marketing for an automotive business, explained: “Your structure must scaffold your agencies. But the marketing strategy needs to be backed by finance and supported by procurement to ensure everything runs as it should.”
Doing this against a backdrop of lightning-fast change is hard, panellists agreed. The global agency lead added, “Business fundamentals are changing in weeks or even days at the moment, not months or years as used to be the case. Your best strategy ever can quickly go out of the window.”
But she also struck an optimistic note: “With strategic nous and an ability to move quickly good things can happen. As long as brand and agency can hold discussions ‘in the moment’ you can make a plan. It might not immediately be perfect but that speed of response is an important first step.”
3. Is this the era of ‘the bigger they are, the harder they fall’?
Continuing the confident tone the experts told the audience that this era of change is an exciting opportunity for procurement, marketing and agency teams alike. The agency head stated: “It’s an opportunity for an new type of agency to make its mark as the industry reassess what good looks like.”
Yet there was also a warning that resistance to change would be counterproductive for agencies, and that “building a model for a world that no longer exists” could sound the death knell for some.
Asked specifically how large agency networks can stay stable on shifting sands, the marketing procurement consultant observed: “Some of them are ‘too big to fail’ - but if that’s the attitude then they are in danger of failing. Agencies can no longer exist solely to provide creative solutions, they need to directly address business problems too in order to survive.”
He also contended that the trend for holding companies’ senior management teams to splinter off and set up breakaway agencies could become a thing of the past, adding: “That model won’t have the scale clients need and will be deemed too risky.”
4. It’s much better to be social than stay on the outside looking in
With Ingenuity+ recently handling 10 social pitches in the space of just two months. This reflects an Ingenuity Group study earlier in 2025, when 40% of CMO
respondents revealed social media had become the primary channel for their marketing initiatives. A further 57% said they plan to hold a pitch for their social media before February 2026.
“Brands are waking up to the need to keep up with social trends,” reasoned the automotive marketer. “Often agencies default to what a brand wants - but brands don’t always know best. You need to adapt the model to also work with agencies that specialise in social.”
A senior marketing procurement professional working in retail agreed: “Some agencies are being left behind. They aren’t set up to handle personalisation, which is the underlying trend of the rise in digital and social in particular. That requires different capabilities: not just planning, creative and media but a deeper understanding of platforms and data.”
These insights opened the door to a brief discussion about the effect of AI. And that, added the automotive marketing expert, means “everyone involved must understand how to comply with existing rules - even if they are still a grey area.” She added: “I’m yet to see many agencies demonstrate how they will use AI to add value to brands. What can AI solve that hasn’t been solved before?”
5. How agencies can cope with changing models and still succeed
Finally, each of the panellists was asked to contribute one insight that will help procurement teams, marketers and agencies find harmony at a time of constant churn.
Here’s their advice:
“Agencies shouldn’t feel or appear untouchable - don’t just rely on a CMO relationship anymore.”
“Procurement and marketing should choose partners they can pick up the phone to for proactive conversations about solving the business’s problems.”
“Context is king. Where is the pressure coming from and what needs to be achieved by the CEO and CFO, not just the CMO and the agency? Don’t just answer a brief, solve the problem.”
“Change the current cost-driven relationship, which is far too adversarial, to an incentive-based models. Hit marketing KPIs for a pat on the back; drive growth for a brand and get extra rewards.”