The Agency Model is Fast Becoming Obsolete, and Why That's a Good Thing

By The Malketeer

The Great Marketing Unbundling and Reaggregation of Work

From the golden age of Madison Avenue to the digital disruption of the 2000s, marketers have had to continuously adapt to new technologies, media platforms, and consumer behaviours.

But today, we are witnessing a more profound shift—one that is unbundling the traditional marketing agency model and reaggregating work in ways that will redefine how brands connect with consumers.

Much like how music streaming unbundled albums into individual tracks that consumers now assemble into personalised playlists, marketing services are being broken down into specialised tasks and distributed across a global network of talent, tools, and technologies.

The traditional full-service agency model—where brands relied on a single firm to handle everything from creative to media buying—is rapidly becoming obsolete.

Several factors are driving this shift:

• In-Housing and Direct-to-Talent Models: More brands are building internal marketing teams, bypassing agencies and working directly with freelancers, consultants, and specialised vendors.
• The Rise of AI and Automation: Platforms like ChatGPT, Midjourney, and programmatic ad buying are automating tasks that once required teams of strategists, copywriters, and media planners.
• Decentralised Content Creation: Influencers, content creators, and niche agencies are now driving brand storytelling, reducing the need for traditional agency-led creative development.
• Data-Driven Marketing Ecosystems: Brands are investing in their own first-party data capabilities, reducing reliance on agency-managed analytics and strategy.

Historically, agencies thrived by offering bundled services under long-term retainers.

But the days of brands committing to a single agency for years are fading.

Instead, marketing work is being structured around projects and campaigns, with brands assembling the best mix of internal teams, freelance experts, and AI-powered solutions on an as-needed basis.

This mirrors what’s happening across industries: companies like Meta and Amazon are growing revenue while reducing full-time headcount, leveraging automation and fractional talent.

In marketing, this means a shift away from large agency teams towards a more agile and cost-effective model.

The New Marketing Workforce: A Hybrid of Humans and AI

Marketing teams of the future will look very different from those of the past. Expect to see:

• Lean In-House Teams: Focused on strategy, brand vision, and oversight.
• AI-Powered Execution: AI will handle content creation, media buying, audience segmentation, and performance optimisation.
• Specialised Freelancers & Niche Agencies: Providing high-impact creative, influencer partnerships, and culturally relevant insights.
• Fractional CMOs and Experts: Senior strategists working across multiple brands rather than being locked into a single company.

This transformation presents both opportunities and challenges for marketing professionals and agencies.

Opportunities:

• More Autonomy & Flexibility: Marketers can operate as “companies of one,” choosing projects that align with their passions and skills.
• Innovation & Speed: Smaller, agile teams will be able to move faster and experiment more freely than legacy agencies.
• Higher Earning Potential: Top-tier specialists and consultants will command premium rates for their expertise.

Challenges:

• Job Security & Income Volatility: The shift away from full-time employment will require marketers to diversify income sources.
• Keeping Up with AI: Marketers must continuously upskill to stay relevant in an industry where AI is rapidly automating many tasks.
• Redefining Client Relationships: Agencies must move from retainers to more flexible, value-based pricing models to remain competitive.

Thriving in the New Marketing Era

1. Think Like a Brand, Not an Employee: Whether you’re an individual marketer or an agency, operate like a brand. Build a reputation, specialise, and showcase your expertise.
2. Leverage AI Instead of Competing Against It: Use AI-powered tools to enhance efficiency rather than resisting the inevitable shift.
3. Embrace Fractional Work: Consider working across multiple brands or projects to diversify your income and gain broader industry exposure.
4. Develop a Strong Network: Success in a decentralised work environment depends on relationships and collaborations. Build and nurture your professional network.
5. Move Beyond Execution—Own Strategy: AI can handle execution, but human creativity and strategic thinking remain invaluable. Position yourself as a strategist rather than just a doer.

The marketing industry is entering an era of unprecedented flexibility and innovation.

The traditional agency model is being dismantled, but that’s not a bad thing—it’s an opportunity to build a new system that is more dynamic, efficient, and tailored to the needs of modern brands.

For those willing to adapt, the future of marketing is not just secure—it’s brighter than ever.

The question is no longer whether this transformation will happen.

It already has.

The only choice left is how we respond.

Source: “The Great Separation/Reaggregation of Work” by Rishad Tobaccowala.