The most vulnerable agency functions — content production, copy drafting, basic media buying, and performance reporting — face structural displacement. And the proof points are emerging.
The In-House Proof Point:
Palo Alto Networks developed an entire advertising campaign without external agencies — a demonstration that sophisticated brands can now bypass traditional agency relationships entirely.
The AI Production Revolution:
- Coca-Cola: AI-generated Christmas commercial — second consecutive year
- MediaLink: Agencies adopting AI recorded over 27% in cost savings
- Static image production: Costs dropped by an order of magnitude
- Forrester: 7.5% of agency jobs replaced by automation by 2030
The Concern for Agencies:
Companies may choose to use automated tools to build in-house marketing teams. When AI raises the bar for ad quality generally, the differentiation agencies provided through production excellence becomes less defensible.
What’s Most Vulnerable:
- Content production
- Copy drafting
- Basic media buying
- Performance reporting
This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.
