“AI-powered solutions are critical given increased fragmentation and complexity,” says Marla Kaplowitz, president and CEO of the American Association of Advertising Agencies. “But it’s essential for agencies to understand how AI and data are being applied to effectively yield the greatest return on behalf of clients.”
“AI helps us surface more insights and empowers us to take actions more quickly,” explained Jeremy Hull, chief product officer for North America at Brainlabs. “It enables us to do more — move faster, improve performance, get more value out of the people we have and bring them along on an exciting career path.”
AI is enabling agencies to provide higher-value marketing services and drive stronger results for brands at all levels of digital maturity. Recent research indicates that leading marketers, despite showing a greater likelihood to have cultivated in-house digital marketing capabilities, maintain strong agency relationships. In fact, leading marketers partner with a greater number of agencies, on average, than their less successful counterparts. But how they work with agencies differs. For example, leading marketers tend to focus on overall strategy, while average marketers are inclined to engage on campaign execution alone.
When choosing agency partners, marketers increasingly make decisions based on strategic impact and demonstrated business results, rather than team size or the billable hours required to manage campaigns. That’s why many agencies are replacing traditional fixed-fee and retainer models with more flexible, growth-oriented models. For instance, 41% of agencies now use performance-based compensation models.2 By investing in new strategic areas that help fuel AI-powered solutions, agencies can drive the business outcomes they are now accountable for.
Having a laser focus on outcomes is leading Jellyfish and other top agencies to expand their scope and reinvest in new strategic areas.
According to Jellyfish Co-Founder and CEO Rob Pierre, “The mix of media versus human resource and technology is shifting, and I don’t think the industry has quite caught up with that yet. At Jellyfish, we focus on outcomes as opposed to hours. Once the mindset becomes outcome-based, AI becomes more powerful, as does the ability to do more with the marketing spend available.”