Based on the current climate, here’s what to expect in the advertising and marketing industry for the fall and winter of 2025. The industry is navigating three simultaneous and significant changes: the evolving business environment, the fragmentation of traditional agency structures, and the impact of AI.
Adapting to a New Business Climate
The current business climate is forcing brands to adjust on the fly. This shift has led to an increased demand for real-time responsiveness from advertising and marketing agencies. The most successful agencies and brands are those that can insert themselves into the cultural conversation, generating significant earned media and a high return on investment. Companies like Duolingo, Poppi, Liquid Death, DoorDash, and Chili’s, along with agencies like Rethink, Gut, David, and Golin, have excelled at creating timely, relevant, and conversation-driving work that goes viral and is remembered by people. Brands are seeking partners who can respond quickly to emerging trends and produce work that becomes part of the cultural moment.
The Evolution of the Agency Landscape
The historical structure of the advertising world is undergoing rapid change. We’re seeing a decline in the influence of some of the old guard, evidenced by mergers like the one between IPG and Omnicom. And, WPP is facing revenue pressures. At the same time, there’s been a proliferation of new, independent agencies across the U.S. and Europe. These smaller agencies are experiencing significant growth and are becoming formidable players. This shift is driven by their agility, ability to offer a more personalized approach, and lower overhead costs, which often translate into greater value for clients. The significant uptick in attendance at small agency conferences in recent years is also a clear indicator of this trend.
The Impact of AI
The third major change is the rapid evolution and adoption of AI. While you can’t avoid discussing AI in any industry, it’s had a profound impact on advertising. The challenge for agencies and marketers will be to integrate AI effectively without compromising the human creativity and strategic thinking that connects with audiences. AI is a powerful tool for efficiency and optimization, but it’s the human element that continues to drive the most impactful and culturally resonant work.
