We don’t always cover the world of agency strategy in our digital trends and predictions for the year ahead, but there’s a lot going on in that world at the moment.
So, we spoke to three of our favourite agency and consultancy folk: Jenny Burns CEO at Magnetic; Matt Redman, SVP Strategy at Valtech; and Nils Andersson Wimby, Group Client Director at Mindshare Sweden. We asked them the following questions:
Here’s what they had to say…
Matt Redman, SVP Strategy, at Valtech:
Size has been slipping away from agencies as a competitive advantage. Programmatic media did this for media agencies and AI is now doing this to creative production. Yet agency leaders seem hooked on consolidating their scale, instead of focussing on building exceptional creative teams. Creativity will become a differentiator again as the playing field levels again.
Jenny Burns, CEO, Magnetic:
The true elephant in the room is the commoditisation of creativity and innovation services. Agencies are increasingly being squeezed by procurement-driven cost cutting and clients who believe they can replicate creative expertise in-house with the right hires.
The challenge for agencies is proving that they’re not just service providers but strategic partners who bring unique value; insight, perspective, and a breadth of experience that in-house teams often lack. The hard truth is that agencies need to actively fight for their seat at the table, demonstrating not just what they do but how they think.
Nils Andersson Wimby, Group Client Director, Mindshare Sweden:
The elephant in the room for agencies in 2025 is how marketing strategy and marketing as a science is still in the back seat of so much work.
Our field is still pestered by the confusion of tactics and tools with strategies, with tech and channel FoMo, with a nervousness and lack of confidence that means we keep adding more things rather than focusing on fewer, bigger, better.
Not surprising perhaps. There is data showing that marketing is one of the professions with the lowest share of people with a formal education in their field. And at the same time, it’s a complex and evolving field with constant innovation. Strategy is largely an exercise in prioritization, in choosing what not to do. That not an easy undertaking when there are so many fun new opportunities.
TikTok, for example, is not a strategy, it is a tool that may or may not fit into a strategy. The same goes for influencers, performance marketing, omnichannel and even AI. Fighting to put these new things into perspective is a herculean task, and a lot of people are losing that battle.
So, is there a silver lining? Absurdly enough, the continued bleak economic outlook is probably the best thing to happen to us. Budgets in 2025 will be tight and will force us to focus on the things that generate profit rather than the things that are trendy; to choose what not to do.
Jenny Burns, Magnetic:
Stop chasing every trend. Agencies dilute their value by trying to be everything to everyone.
Matt Redman, Valtech:
Firstly, agencies need to stop thinking the path back to creativity will be the same as before. They should start empowering creative leaders who can embrace the emerging technologies and use these to harness new creative experiences.
Focus on using AI for productivity, not cost saving, give teams back the time they have lost through cost pressures to focus on ideas.
Jenny Burns, Magnetic:
Start investing more in deep specialisms and thought leadership. Clients value agencies that have a strong point of view and expertise.
Jenny Burns, Magnetic:
Continue building relationships, not just delivering products, assets and campaigns. Agencies thrive when they connect emotionally with their clients, not just strategically.
Jenny Burns, Magnetic:
The skills coming to the fore are creative problem solving and human-centered creativity – balancing technological know-how with genuine empathy for the customer’s perspective.
Missing, however, is a deep understanding of business and systems thinking within creative teams. Agencies don’t just need to create; they need to create solutions that work in the complex environments clients operate in. There’s also a skills gap in data storytelling – the ability to translate data insights into actionable and compelling narratives that inspire decision-making.
Matt Redman, Valtech:
I wish everyone would stop obsessing over the idea that generative AI is going to kill creativity.
Jenny Burns, Magnetic:
The relentless hype around AI replacing creativity needs to stop. Yes, AI is a powerful tool, but creativity is inherently human – it’s about understanding nuance, emotion, and culture in ways AI simply cannot. Instead of fearing replacement, agencies should focus on how AI can augment their capabilities, freeing up time for deeper strategic and creative thinking.
Matt Redman, Valtech:
One of the most significant shifts we’ll see will be the adoption of agentic AI – a form of AI that can act independently without human oversight. Its adoption will optimise internal processes as well as client deliverables, freeing people’s time to focus on other priorities. As a result, scale will give way to expertise, and more strategic services will become a focus for service-based digital agencies.
Matt Redman, Valtech:
I’ve been using the phrase “generative business” to explain what I believe will come next regarding generative AI. Too much focus has been placed on content and AI alone. In reality, the confluence of AI, cloud, IoT, mobile, composable technology, and data is driving the next wave of innovation and creativity. “Generative business” is about the creation of new digital products and services, instead of whether we can make ads faster and cheaper using AI.
In 2025, businesses will face a much lower cost of entry to experiment with new digital products and services. They will be able to move across categories, borrow capabilities from other companies via API, and only pay for the tech they need to run it via IT as a service model. This will allow brands and marketers alike to get back to doing groundbreaking work, collaborating with the C-suite to drive growth through new digital products and services, as well as doing amazing creative work that uses AI to do things we have never been able to do before.
Jenny Burns, Magnetic:
In an industry driven by innovation and collaboration, the strength of relationships, trust, and a shared purpose will make the difference between agencies that survive and those that thrive. Clients may come for the expertise, but they stay for the partnership. Agencies that invest in their people, culture, and client relationships will build resilience in an ever-changing landscape.
You can view all of our 2025 predictions here.
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