Advertising the industry is going through the deepest crisis since its inception. Although at first glance one might think that the causes are external - digital transformation, economic uncertainty or the growth of advertising costs, part of the problem originates from itself. industry. In an effort to adapt to new circumstances, marketing agencies often set themselves obstacles that distanced them from their former relevance in the market. However, this is hardly noticed: commercials are aired, campaigns are planned, budgets are spent. However, beneath that routine, there is a silent erosion of the advertising industry model that has shaped not only the market but also the cultural pattern of society for decades.
Not only is the way brands communicate with consumers changing, the very essence of advertising is also changing. What was once an industry of meaning has turned into an industry of content. The real power of advertising used to rest on stories that inspire, the courage to take risks and ideas that remember. Today, the tone is dictated by data, short-term results and the pursuit of "safe" solutions, while creativity and instinct are gradually losing importance.
Over the past decade, audiences have irrevocably moved from traditional media to digital platforms. Television, once the main source of attention and advertising power, is now losing the race to what is happening on phone and computer screens. According to a report by market research provider MarketResearch, the global digital advertising market is estimated to reach $595 billion in 2024. It is expected to record an average annual growth rate of 11 percent and reach a value of $1,1 trillion by 2030. On the other hand, traditional advertising through television, print, billboards and radio had a value of about 240 billion dollars in 2022, according to data from the company GlobalData. Estimates indicate that by 2030, the value of this market will grow to approximately 420 billion dollars, with an average annual growth of about 5,5 percent.
Large agency networks entered the process of centralization and optimization of operations, which was supposed to bring better efficiency. Mergers, takeovers, restructuring, cost reduction, etc., were all supposed to ensure better competitiveness in the market. Instead, global advertising conglomerates have lost the ability to fundamentally understand the local context and express it through an original idea. The British company WPP, until recently the world's largest advertising group, whose portfolio includes Ogilvy, AKQA and Grey, has reduced the number of employees by about 7.000 in the last year. Reuters reports that the company's market value has plummeted in recent years to its current £4bn, compared to around £25bn in 2017. In an attempt to catch up with the changes, WPP launched the platform Open Pro, which allows brands to independently create and market marketing campaigns using artificial intelligence. The irony is obvious: the agency is now selling a tool that makes it redundant and obsolete.
And consumers have changed, they no longer agree to be passive recipients of messages. More and more of them use ad blockers and trust recommendations from friends, influencers and communities with whom they share similar values instead of advertisements. That's why marketing relies on trust and experience, and less and less on aggressive presence and repetition. Classic formats that rely on one-way communication, such as spots, ads and billboards, have become almost useless. In a world where everyone has their own channel, there is no one to send such a message.
An additional problem is that technology giants are taking over more and more functions that were once performed by marketing agencies. Meta, Google and Amazon are developing systems that automate all stages of advertising - from defining the audience, through content creation, budget optimization to advertising placement. In this way, the creative, human element in the processes today becomes almost symbolic. What was once the fruit of months of research, ideas and team imagination is now transformed into a product of cold algorithmic logic. For an advertising industry that has lived on the "human touch" for decades, this is a serious blow. Artificial intelligence undermines the very foundations of the business models of advertising agencies. Traditional hourly billing is increasingly losing its meaning as AI speeds up processes and reduces the need for large teams. As a result, many agencies are moving to performance-based rather than time-based billing models. In theory, this means that the value of work is measured by results, not hours. However, in practice, the focus is often solely on speed: that as much content as possible can be produced in the shortest possible time. The process became "optimized", blank paper replaced it prompt field, and the artificial intelligence gives the answer even before the question is completed. In this accelerated rhythm, creativity is no longer the origin of efficiency, but its by-product.
The industry is trying to respond by restructuring. Omnicom announced the acquisition of Interpublic Group for $13 billion, which will create the largest advertising network in the world, with annual revenues exceeding $20 billion. This deal represents the largest merger in advertising history, with the goal of integrating data, technology and creativity into a single system that will compete with the tech giants. At the opposite end of the spectrum, the American agency TM Advertising, after 85 years of existence, closed its doors. Budget cuts from key clients led to its financial collapse and the symbolic end of an era.
Behind both events lies the same realization: the model that defined the advertising industry for decades has become unsustainable. If the algorithm today writes texts and creates visuals, and the user himself shapes the content, what remains for the agency that was once the key mediator between the brand and the audience? Perhaps the answer lies not in form but in function. Agencies used to exist to help brands reach people. Today, they could help them better understand the world, context and individuals. In an age where everyone is constantly communicating, the real value is not in the message but in its interpretation. And that's why creativity is no longer a matter of aesthetics, but of orientation, the ability to recognize what really makes sense from the noise of information.
Agencies, which originated as the voices of brands, today must find their own voice. It's not necessarily those with the biggest teams that will survive, but those that understand the broader social context and cultural currents, use AI as a partner that frees up time for creative thinking, and provides strategic oversight where an algorithm can't. Technology thus becomes an opportunity to find a new purpose - because in a world where everyone has tools, what really remains valuable is the idea. Especially the one that translates into meaning, not just format.
