5 Key Insights Into the Agency New Business Landscape

While the Agency New Business Blog has been quiet this year, the TDP team has been working with agencies across the country, learning, adapting, and helping to navigate the changing agency new business landscape. Through countless conversations and strategy sessions, we've gathered some insights I'm excited to share with you.

How Agency New Business Looks Now

This year has brought unique challenges and opportunities. As we wind down Q4 and think about what lies ahead, here's what we've observed on the front lines:

key insights into agency new business landscape

Where AI Fits Into Agency New Business

For new business, AI tools can provide a competitive edge or be a point of differentiation. Some agencies are pacing ahead here, but many of us are still testing tools and trying to figure it out as the technology grows.

What’s your AI policy? When brands choose an agency partner, those that can clearly articulate their AI strategy have an advantage over those with vague positions. Brands appreciate the clarity more than the hype.

Per AdAge, agencies are using AI to facilitate the pitch process, with some agency leaders claiming extreme efficiencies—such as 80-90% of time saved on activities like completing RFIs. While brands are also eager for efficiencies that will improve performance and save money, remember that agency cost savings mean brands will want to pay less, too. Just ask procurement!

The Human Touch Makes a Comeback

In a plot twist that shouldn't surprise any of us, relationship-based business development is making a major comeback. After years of Zoom calls and LinkedIn fatigue, decision-makers crave genuine connections. An agency leader recently told me, "One coffee meeting is worth a thousand emails," and I couldn't agree more.

How can you incorporate this into your agency’s growth plan? Prioritize in-person meetings with prospects and clients. Identify the events where your prospects are likely to be and get your team out there to have conversations and show expertise.

In terms of new business outreach, make your communications one-to-one, and try new channels to show up as a human vs. extra noise. Let’s be honest; the problem with inbox overflow is junk mail—the opposite of a human touch. We know that email still works, but personalization and care make all the difference.

The Strategic Partner Imperative

Here's something interesting we're noticing: clients are seeking agencies that feel less like vendors and more like that trusted friend who always gives great advice. They want partners who can:

Demonstrate deeper industry knowledge
Show proven business impact beyond campaign metrics
Bring insights and opportunities to the table proactively

This speaks to marketers’ priorities right now. CMOs, in particular, are in a tough spot, which creates an opportunity for agencies to help them. Unfortunately, according to a 2023 survey from Setup, marketers are dissatisfied with the value their agencies bring. That dissatisfaction is a precursor for agency reviews, which we’ve seen more of this year—and for lower-value business (AdAge).

There are positive signs that marketers are viewing their agency partners differently, too. That includes recent public shoutouts on the Masters of Marketing stage from Progressive Insurance CMO Remi Kent to Arnold Worldwide, and from Colgate-Palmolive’s Diana Haussling, who gave shouts to WPP, Arc Worldwide, and Walrus (AdAge). That level of public recognition hasn’t always been there.

We’ve also seen agencies defying the odds with decades-long client relationships strong enough to survive leadership transitions. Small to midsize independent agencies seem to have an edge here because they’re more likely to have agency leadership closely involved in day-to-day client interactions.

new business landscape for agencies

Finding Your Sweet Spot

We’ve been saying this for a while, but the days of being everything to everyone might finally be behind us. We're seeing agencies win big when they embrace what makes them unique, even if that means saying "no" to opportunities outside their wheelhouse. The "full-service agency" pitch is less compelling than having focused expertise or industry specialization.

Marketers have been building up their agency rosters and enlisting more specialist agencies to diversify their creative choices (AdAge). In the past, brands had moved toward agency consolidation, but marketers have grown disenchanted with all-in-one solutions. A growing number appreciate the flexibility and lower risk of having multiple options. For agencies, this translates to more opportunities, but ones that are smaller and more sporadic.

Money Talks for Future-Built Agencies

While budgets are still being watched carefully, meaningful conversations about value and results are opening more doors than ever. This is less about being the cheapest option and more about being the smartest investment.

Successful agencies are shifting conversations from cost to investment and expected returns earlier in the relationship. They are also finding new ways to work, because conversations about cost, value, and ROI tend to highlight inefficiencies in the traditional agency model. These forward-thinking agencies are also moving away from the billable hour and towards value-based pricing models.

Looking Ahead

As we move forward, I'm optimistic about where things are heading for agencies. For all of the ongoing changes, the core ingredients for new business success haven’t changed. They remain:

Clear positioning that resonates with specific client needs
Strong proof points that demonstrate business impact
Authentic relationship-building at scale
Strategic use of both technology and human connection

Thanks for reading. We have a lot of good content planned for the coming months and I look forward to sharing more of what we're learning as we get back into our writing groove.

With that said, we’re always eager to hear what's on our readers’ minds. How are you navigating these waters? Drop us a note or leave a comment - we'd love to hear your story.