To thrive in an AI-powered market where uncertainty is the new normal, agencies must find new ways to stand out, sell and price.
The IPA’s Business Growth Conference always offers food for thought and this year was no exception.
Stood behind a lectern emblazoned with ‘Optimism is the new pessimism’, the IPA’s Commercial Leadership Group Chair Jason Cobbold got us off to a suitably upbeat start – agencies are indeed an accelerant of growth. So how can they accelerate their own growth?
It’s the economy: stupid
As with 2024’s conference, BBC News Economics Editor Faisal Islam was first up. Always insightful and discursive, he’s three parts news geek to one part Stewart Lee. And in a chaotic world, his wry asides were doubly welcome.
With time enough to cover just six months of geopolitical bonkersness, thankfully Faisal debunked his own claim to being “never knowingly optimistic” by leaving us in a good place.
Specifically, as economists watch the White House tear up the rule book, the predicted global meltdown hasn’t actually materialized. In fact, the UK can be an oasis of stability as the rest of the world seeks calmer waters beyond the US. UK plc can lead the way, not least by harnessing AI.
Creativity for turbulent times
Next up was newly appointed IPA President Karen Martin, maintaining the upbeat tone by reminding us of the commercial value of ‘creativity’, especially in turbulent times. It is the “fuel that drives the most successful businesses.”
Despite this power, agencies must remember that ‘creativity’ is table stakes. It can’t be everyone’s differentiator. This is especially true as AI becomes more widespread. And as Karen rightly warned, “When everyone has the same tools, difference brings the edge.” That’s as true of agencies as it is for creative ideas.
The Recommerce opportunity
Celebrating creativity was the perfect segue into a new avenue for our collective optimism – the circular economy. Led by the IPA Sustainability Action Group, this session highlighted opportunities in a space that’s growing three times faster than the UK economy.
Rosie Kitson, Havas UK’s chief impact officer highlighted that Recommerce is big business, predicted to grow from £6.6b today to £12.4b in 2028. Likewise, Kantar’s Jonathan Hall and Vinted’s Danielius Bolotinas spoke passionately about brands taking circular shopping firmly into the mainstream.
This call-to-arms highlighted how agencies can make a difference by investing in the sector, changing perceptions and creating value for brands, shareholders, people and the planet. I’ll drink to that (from a reusable cup).
Ah, good old pitching
And so to that hardy perennial of agency bugbears – pitching. Chaired by Mediaplus UK’s Pedro Martins, Co-Chair of the IPA’s New Business & Marketing Group, this articulate panel offered perspectives on a new–business market that’s 28% down on last year.
OMD’s Tobi Asare reminded us of the value of being proactive with current clients – a clear priority in a project-driven world. BBH’s Ellie Olliff offered a powerful statement on the importance of an influential new-business function, saying “It’s our responsibility not to waste the agency’s time.”
However, despite the passion and expertise on show, as if to prove Karen’s point about ‘difference being the edge’, the reality is that pitching woes are symptomatic of a wider lack of agency differentiation. If agencies were less interchangeable, then new-business would cease to be an arms race won and lost on the finest of subjective margins.
And as Pablo’s Gina Hood eloquently argued, for the Pitch Positive Pledge to have any real traction, it needs more clients onboard. To do that, we must debunk the myth of ‘oversupply’ by demonstrating to marketers and procurement that agencies have unique qualities and are willing to be choosy about which brands they choose to make famous.
The state of pricing
Having explored pitching, where next but pricing? Creative Salon’s Jeremy Lee set the scene by introducing the IPA’s new report, The Price Isn’t Right.
The takeout was that despite cataclysmic industry change, the vast majority of clients are still buying time. This erodes margins by making it easy for clients to play agencies off against each other.
The advice was clear – instead of being complicit in commoditisation, it’s time to embrace new pricing models. In short, sell impact not ideas (commercial creativity, anyone?).
This rallying cry was met with an oddly muted response from the panel, admirably chaired by the ever-incisive Sonoo Singh. In particular, Publicis’ Charlie Rudd described the FTE model as “traditional, but not outdated”, adding that regular revenue was needed to “cover staff and rent”.
Happily, Ace of Hearts co-founder Polly McMorrow was more upbeat, expressing the power of being seen as experts: “We get to control the value exchange.”
That said – as the client-side panellists Sharon Hegarty and Glenfiddich’s Martin Jaskolowski both acknowledged – clearly there’s inertia to widespread change, especially in larger, more conservative client organisations.
But as I raised in my own question to the panel, as AI renders time spent barely a footnote in the creation of value, how can selling FTEs remain the dominant model? Make no mistake – change is coming. And from an agency profit perspective, it can’t come soon enough.
AI as a business driver
Having opened Pandora’s box on AI, the next panel willingly dived in. The key message was that AI is far more than an efficiency driver (a reality rarely broached in Cannes this year). In fact, it’s a driver of growth.
As Genie’s Nicky Badenoch put it, while talk of efficiency creates fear in the creative industries, “AI can be a force multiplier, especially if you bring the right people together.”
Similarly, Dentsu’s Caitlin Ryan reminded us that AI-powered creative isn’t all bottom-of-the-funnel asset generation. It’s also a powerful accelerator for ideation.
Simon Luff from Ear to the Ground (full disclosure: a Co:definery client) neatly skewered the ubiquitous ‘indies vs hold co.s’ topic by recognising that while larger shops have deeper datasets, the smaller agencies can evolve more quickly.
As moderator Marcos Angelides beautifully summarised, “Different agencies can use AI in different ways, to reflect their culture and vision for the future.”
Lessons from Mr. Bingo
And so to the final act – artist and entrepreneur, Mr Bingo. Part life story, part deluge of creativity, I won’t even try to summarise his joyful, inspiring and unique presentation. But I will share a powerful lesson in intentionality.
As an illustrator, Mr Bingo went where the work was. That meant scrapping for briefs, doing as he was told, and making enough money to get by. But since becoming an artist, he now makes the work he loves, has clients who pay what he asks, and lives the life he chooses.
This confidence to focus remains rare in our industry. But rather than just chasing down enough revenue to survive, the best agencies in the world find an audience for the work they live to create. Be more Bingo.
Turn optimism into profit
So there you have it. The day was optimistic without being blind, and practical without being dull. And it fairly reflected an industry that’s excited by change but also challenged by inertia.
As Karen said, creativity is indeed a driver of change, especially in an age of uncertainty. But we need to innovate more broadly. As AI decimates the billable hour, finding new ways to get paid is mission-critical.
The pitch process as it stands is symptomatic of a powerless and commoditised agency market where best-idea-wins is routinely steamrollered by best-price-wins.
To change this dynamic – and how you price – you need to be seen as different, especially as AI democratises your capabilities.
Thankfully, all agencies have the ability to do this. After all, creating difference is what you do. As the lectern said, ‘Optimism is the new pessimism.’