What does 2025 have in store for agencies?

If you have a budget and a product or service to promote, you (or your chosen advertising agency) can create an ad and place it where you believe it will reach the right audience.

Anyone can do this. You don’t need to be an expert to spend money on advertising. However, a good media planning and buying agency (like us!), provides the rationale and strategy behind that spend. Our industry expertise can ensure a better outcome than the 'anyone can do it' approach.

While the advertising landscape is set to evolve dramatically in 2025, the core relationship between agencies and clients remains steadfast. Organisations will always need agencies to ensure their advertising budgets are spent efficiently, campaigns run smoothly, and goals are met.

But change is inevitable, and agencies must adapt to thrive. So what does the future hold for agencies in 2025?

First and foremost; small is beautiful

The era of the sprawling, high-overhead, full-service agency is waning. Large agencies continue to face the challenge of maintaining massive teams and expensive office spaces in big cities like London, New York, and Tokyo. These costs that inevitably trickle down to clients.

By contrast, smaller agencies, are leaner, more efficient, and often more specialised. They can pivot quickly, work flexibly with freelancers, and build tailored teams for specific projects. This approach benefits clients, who enjoy reduced costs and highly skilled teams focused on their unique needs.

Freelance and partnership networks are becoming central to this model. We had a brilliant 2024 working with so many freelancers and agencies who don't do what we do! 

Smaller agencies that foster strong relationships within their industry gain a significant advantage, as they can access trusted collaborators as needed. This agile approach reduces overheads and ensures specialised expertise for every campaign.

While global conglomerates will persist, the divide between mega-agencies and nimble specialists is widening. Organisations seeking value, local expertise, and a personalised approach are increasingly turning to smaller, more adaptive agencies.

Don't pick a jack of all trades, pick a master of one.

Measure up

Data has transformed advertising, but in 2025, measurement will take centre stage. Marketing budgets are under intense scrutiny, and agencies must demonstrate the value of every pound spent.

The availability of detailed performance data from platforms and channels has elevated the importance of targeting and tracking. Clients expect more than just impressions and clicks (and rightly so!), they want meaningful metrics like customer lifetime value, conversion rates, and brand uplift. Agencies that fail to provide this level of accountability risk losing their competitive edge.

And finally, data and creativity will be a perfect match

While data is vital, it’s not the whole story. Creativity remains the cornerstone of effective advertising.

The ability to analyse audience behaviour and identify the right channels is only part of the equation. The message, design, and execution are what ultimately resonate with audiences. Without creativity, even the most sophisticated targeting falls flat.

As AI tools and automation improve, they will support (but not replace), creative professionals. Crafting authentic, memorable campaigns requires a human touch that machines simply cannot replicate. In 2025, the most successful campaigns will marry cutting-edge data analytics with compelling creative work.

So there you have it, our thoughts on what is in store for agencies in 2025. While our industry is poised for transformation this year, its core purpose remains unchanged: connecting brands with their audiences in meaningful ways to deliver measurable results. 

Smaller, more adaptive agencies like ours, are set to dominate, offering efficiency and expertise. At the same time, data-driven accountability and creativity will work hand in hand to deliver campaigns that are as measurable as they are impactful.