The advertising agency business model is undergoing its most profound transformation since the shift from print to broadcast.
The Core Thesis:
AI commoditizes production but increases strategic complexity. Agencies that pivot from making ads to orchestrating AI-generated campaigns across fragmented platforms may emerge stronger. Those who sell hours and bodies face existential pressure.
The Great Divergence:
Google grew 5x while agencies stayed flat
Platform ratio: 5:1
Google Ads: $265B
All 4 major agencies combined: ~$55B
2025: The Year of Agency Reckoning:
WPP: -62%
Publicis: -25% (but analyst ratings at highs)
Omnicom: -18%
Dentsu: Strategic Review
The Bull Case:
“The industry is being disrupted, but it’s not being disintermediated” — Morningstar
Agencies that orchestrate AI-generated campaigns across fragmented platforms may emerge stronger than before.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
