Second, the multiplier effect on in-housing is artificial intelligence: AI is accelerating the in-housing trend as clients want to own and understand AI for their own survival. It is a strategic asset, not a capability to be outsourced.

For decades, the holding companies held the high ground in the advertising world. They were seen as essential partners, offering high-value, high-margin, and high-growth solutions to global brands. Clients turned to them for creative vision, strategic insight, and media expertise. That high ground, however, has now fully eroded. Today the holding companies mostly focus on serving the biggest companies in the world. They are doing everything possible to stay relevant with the top 100 spenders.

What’s next for independent agencies?

But my views are not all negative. For the first time in generations, the grass is greener on the independent agency front.

There is innovation, freedom, and margin outside of those top 100 spenders. The holding companies need the top 100 to impact earnings—the rest of us do not. We can live very well by serving everyone else.

The top 100 accounts for between 20-30% of global GDP. That leaves 70-80% of the global economy for the rest of us to chase. The other good news is that these companies need good partners because they can’t afford to build everything in-house like the top 100 can.

The independent world is about quality, not scale. There is always a market for quality. We can offer what the giants cannot: personalized service, genuine partnership, and the ability to adapt quickly to client needs. We can take pride in good strategy, creativity, digital, social. We can break new ground with AI. We can continue to build strong relationships.

Our industry is at another natural crossroads as the old models are replaced with new models. There is no place I’d rather be than at an independent firm.