5 Takeaways from the 2025 Small Agency Conference
Key insights from the 2025 Ad Age Small Agency Conference covering client relationships, fair compensation, private equity readiness, economic strategies, and AI implementation beyond production.
5 Takeaways from the 2025 Ad Age Small Agency Conference
1. How to Work with Bigger Marketers
Small agencies should focus on identifying specific client gaps rather than mimicking larger agencies' structure. Chili's VP of Marketing Jesse Johnson advised shops to ask: "What [is the client] missing that we can then help fill?"
Additional strategies include pursuing project-based work initially, showcasing past work to build credibility, and leveraging strong production partnerships to demonstrate scalability without large in-house teams.
2. How to Get Paid Fairly for Your Work
Agencies should implement licensing agreements that guarantee ongoing compensation for ideas even after client relationships end. This protects against situations where a single project becomes a recurring campaign without additional payment.
Legal experts recommend clearly delineating when pitching ends and billable work begins—ideally through a simple email outlining ground rules before formal contracts are signed.
3. Know If You're Ready for Private Equity
Agencies need to hit specific milestones before attracting PE investment: 15-20% annual growth, healthy margins, low client concentration, and in-demand capabilities like social or CTV. Most investors focus on shops with $5-10 million EBITDA.
When evaluating deals, meet with portfolio companies within the PE firm and establish independent board directors post-close for strategic oversight.
4. How Agencies Should Respond to Economic Changes
During economic uncertainty, strengthen existing client relationships rather than chasing new business. Consider strategic partnerships with complementary agencies—pairing creative strength with media and audience insights expertise.
Educate staff on broader business challenges CMOs face beyond marketing, including supply chain issues.
5. How Small Agencies Use AI Beyond Production
Laughlin Constable developed an AI agent called Interplay that identifies potential client matches by analyzing agency strengths and win patterns, scanning the market weekly for recommendations. The agency plans to open-source the technology.
Source: Ad Age - Read original article