Michel Lubac, Philemonday Agency
Introduction: The AI Inflection Point for the Advertising Industry
The advertising industry is at a real inflection point. Artificial intelligence (AI) is no longer just a support tool or an "adjacent" technology; It is rapidly evolving into autonomous "agentic" systems, capable of making campaign decisions in real time with purely strategic human supervision. Gone are the days when AI was treated as a separate strategy. It is now the connective tissue of modern marketing, embedded in every campaign, channel, and conversation. The question is no longer whether AI will transform advertising, but what kind of agency will thrive in this new paradigm.
Our central thesis is that the agencies that will dominate the next decade will not necessarily be the largest, but those that have stopped debating the merits of AI and integrated it natively into their operational fabric. expertise, inoups (holding companies) make massive and centralized investments in AI that often lock them into a given solution, the structural advantages inherent in independent agencies are to have greater agility, to constantly iterate new solutions, to find more competitive directions for their clients and to develop specialized expertise, in short, their agility uniquely positions them to thrive. They are better equipped to amplify human ingenuity rather than seek to replace it.
The future of advertising is not a confrontation between humans and machines, but for the moment as a hybrid model of "Human + AI". In this context, the most valuable human skills are empathy, creativity, strategic judgment and cultural intelligence, they become more critical than ever. The challenge today is not to automate human talent, but to augment it. This report demonstrates that the structural DNA of independent agencies makes them naturally adapted to this new and ever-changing reality.
The Advantage of Independent Agencies in the Algorithmic Age
The structural and cultural strengths of independent agencies give them a decisive competitive advantage in a rapidly changing technology landscape. These strengths are not just ancillary benefits, but the fundamental pillars of success in the age of AI.
Agility and Speed: Operating at the Pace of AI
Independent agencies are characterized by flatter and less bureaucratic organizational structures. This configuration allows for faster decision-making and near-instantaneous adaptation to new market trends, a crucial asset in an environment where AI technologies and campaign dynamics are changing in real time. Their independence gives them the freedom to experiment with cutting-edge technologies and pivot their strategies without the complex and slow approval processes that characterize large networks. This ability to experiment is all the more vital as 43% of marketing organizations are still in the "experiment" phase with AI.
This inherent flexibility creates a sustainable competitive advantage that can be described as strategic optionality. The market for AI tools is large, fragmented, and ever evolving, with a multitude of specialized solutions. Unlike large corporations that build unique and all-encompassing proprietary platforms, independent agencies are not captive to a closed technology ecosystem. They can act as "best-in-class integrators," continuously evolving their technology arsenal to offer the most powerful combination of tools that best suits each customer's specific needs. What might be perceived as a weakness — the lack of a proprietary platform — is turning into a core strength, centered on the ability to provide unbiased and truly effective solutions.
Customer focus and impartial advice
Independent agencies often cultivate closer, personalized relationships with their clients, which fosters increased trust and a deeper understanding of their business goals. This "data intimacy" is a key factor in effectively leveraging a customer's first-party data, which is the most valuable fuel for training high-performance and accurate AI models.
Freed from the pressures of a group's global media engagements or the requirement to use a proprietary technology stack (which are becoming a bit more of a drag every day in large organizations), independent agencies can offer genuinely unbiased and agnostic recommendations that are entirely focused on the client's outcomes. This neutrality directly addresses the "black box" problem, a major concern where clients fear that an agency's AI will be trained with a bias favoring the agency's own goals over their own.
This close relationship confers another major advantage: the advantage of the "human API". AI models, as powerful as they are, depend on the quality of the instructions they receive. Senior talent within independent agencies acts as a true "human API," translating a client's nuanced business goals, strategic context, and specific data into precise (prompt) instructions for AI systems. It is a translation and orchestration role that cannot be automated. While large networks often face disconnected account management layers and systems, direct access to experienced strategists in an independent agency ensures that AI is driven with maximum intelligence, dramatically improving the quality of results and their alignment with business goals.
Innovation and specialization as an economic model
For many independent agencies, specialization is a fundamental differentiator. They often have deep expertise in specific niches (e.g., B2B, e-commerce, specific technology sectors), which allows for a more relevant and effective application of AI. For example, in France in 2025, the market perfectly illustrates this trend: of the 18,400 communication agencies, 86% are micro-enterprises that thrive thanks to this specialized model.
Not constrained by a single technology platform, these agencies act as strategic integrators. They select and combine the best AI tools available on the market (such as Jasper for copywriting, AdCreative.ai for ad creative, or Albert.ai for media optimization) to build a tailored technology stack that is perfectly tailored to each client's unique needs.
The counter-offensive of large groups: a strategy of scale and integration
The analysis would not be complete without examining the formidable strategies deployed by the major advertising groups. Their massive investments in proprietary AI platforms demonstrate a centralized and integrated approach, which has both undeniable strengths and potential vulnerabilities.
The fortress model: building proprietary AI operating systems
The world's leading players have engaged in a technological arms race to build integrated AI ecosystems:
CoreAI from Publicis Groupe: Publicis has invested €300 million to transform itself from a platform into an "Intelligent System" with CoreAI at its core. This system connects knowledge from across the group, leveraging Epsilon's 2.3 billion consumer profiles and Sapient's technology expertise, while integrating with partners like OpenAI, Adobe and Microsoft. It is the evolution of their previous AI platform, Marcel. Publicis Sapient's Bodhi platform is a critical component, enabling the creation of enterprise-wide agent AI solutions.
WPP Open: WPP invests £300 million a year in AI and data, with its WPP Open marketing operating system as its centerpiece. This platform aims to standardize tools and data across all its agencies (VML, Ogilvy, etc.), connecting media, creation and production. A key element is "Open Intelligence", an AI-based identity solution built on a "Large Marketing Model" trained on trillions of behavioral signals to enable privacy-friendly targeting in a cookieless world.
Omnicom and IPG: Omnicom is in the process of unifying its technology stack (Omni, OmniAI, Artbot) into a single platform-driven organization to integrate AI agents across the campaign lifecycle. For its part, IPG has deployed its own proprietary AI platform, Interact, which is already used by more than 50% of its employees.
Strengths and vulnerabilities of a centralized approach
This centralization strategy has a double face:
Strength - Unmatched data scale: The main advantage for large corporations is their access to massive proprietary data sets, such as Epsilon's data for Publicis. These volumes of data allow them to train potentially more powerful and accurate AI models.
Strength - An integrated service offering: A unified platform like WPP Open or CoreAI promises customers seamless end-to-end service from media strategy to creative and commerce, breaking down the traditional silos that have long crippled large networks.
Vulnerability - Risk of rigidity and stifled innovation: A monolithic platform can be slow to adapt to an extremely rapidly changing AI landscape. Teams can be incentivized, or even forced, to use the in-house solution even when a higher-performing third-party tool exists, potentially stifling innovation and creativity at the operational level.
Vulnerability - The "last mile" problem: While these platforms can process data and automate workflows at scale, they still rely on human teams for strategic interpretation, creative vision, and customer relationship management. The high turnover rate of executives and teams within large groups can disrupt this crucial "last mile" of service delivery.
The development of these centralized platforms is a monumental strategic gamble. If these closed ecosystems become the industry standard and effectively solve customer problems at scale, large corporations will consolidate their dominance. However, if the open ecosystem of specialized and agile AI tools (favored by freelancers) outperforms their closed systems in innovation, this massive investment could turn into a legacy liability — a "golden cage" that is expensive to maintain and slow to adapt, leaving them vulnerable to more vigorous competitors.
Moreover, building platforms like CoreAI and WPP Open is not just a customer-centric strategy. It is also a powerful internal tool for forcing integration and standardization within sprawling networks, often made up of entities acquired over time and with disconnected systems and cultures. By creating a common operating system, they can streamline workflows and realize efficiencies that have historically eluded them. A significant part of the ROI of these platforms will therefore be internal, aimed at solving long-standing structural problems, which will not necessarily result in superior client results compared to those of an independent, more agile and client-focused agency.
AI in action: tangible levers for growth and performance
Beyond strategic analysis, it's critical to look at practical applications of AI that are already driving measurable results throughout the marketing lifecycle. Case studies and quantitative data provide concrete evidence of its impact.
From data to strategy: intelligence augmented by AI
AI is transforming the way strategies are developed by providing unprecedented analysis and prediction capability.
Predictive analytics: AI algorithms analyze historical data to predict market trends, consumer behaviors, and potential campaign outcomes, enabling more proactive and informed strategic planning. Pharmaceutical company Bayer, for example, used AI to predict market trends, resulting in a 33% reduction in cost per click.
Advanced audience segmentation: AI can analyze large data sets to identify nuanced audience segments that are often invisible to human analysts, enabling hyper-targeted campaigns. The Under Armour brand used AI to deliver ultra-targeted ads based on past customer behavior, significantly reducing acquisition costs.
Automated market research: AI agents can be deployed to conduct consumer surveys, analyze competitor strategies, and synthesize results in minutes, a process that previously took weeks.
Augmented creativity: content production and personalization at scale
AI does not replace creativity, but it multiplies its scope and effectiveness.
Generative AI for content: Tools like ChatGPT, Jasper, and Midjourney are being used to generate ad copy, product descriptions, social media posts, and visuals at unprecedented speed and scale. 56% of social media marketers are using generative AI for short-form videos, and 53% for images.
Dynamic creative optimization (DCO): AI assembles and adapts ad creatives in real-time based on user data, context, and performance, ensuring that the most relevant message is always delivered.
Case Study - Mass Customization: The "Nutella Unica" campaign used an AI algorithm to generate 7 million unique packaging designs, turning each jar into a collector's item. This initiative demonstrates AI's ability to apply creativity on an industrial scale, a feat previously unthinkable.
Media optimization and maximization of ROI
AI has become the engine of efficiency in the purchase and management of advertising space.
Programmatic advertising and real-time bidding (RTB): AI is at the heart of modern programmatic buying. It analyzes millions of impressions per second to make automated bidding decisions, maximizing return on ad spend (ROAS).
Budget allocation: AI-driven media mix modeling helps advertisers allocate their budgets across channels with greater accuracy to achieve the best possible results.
Case Study - Autonomous Growth Engine: A Harley-Davidson dealership in New York City used the Albert.ai AI platform to automate its digital advertising. The results were dramatic: a 2,930% increase in leads and a 40% reduction in cost per lead (CPL), illustrating the exponential impact of AI on the bottom line.
The following table consolidates the key performance indicators (KPIs) of several case studies, providing a clear and quantified summary of the financial and operational impact of AI.
Table 1: Comparative ROI of AI-driven marketing campaigns
Company / Brand : Harley-Davidson NYC
Campaign Objective Lead generation
Application of AI Standalone and multi-channel media buying and optimization (Albert.ai)
Key results (KPIs & ROI) +2,930% increase in leads; -40% reduction in cost per lead (CPL).
Company / Brand: Jura (e-commerce)
Campaign Objective Sales Growth & ROAS
Application of AI AI-driven Google Shopping campaign with dynamic bidding and remarketing.
Key results (KPIs & ROI) +77% online revenue; +361% increase in ROAS; -75% reduction in cost per sale.
Company / Brand : Gape
Campaign Objective Campaign performance
Key results (KPIs & ROI) Prediction of market trends and campaign optimization by AI.
Key results (KPIs & ROI) +85% increase in CTR; -33% reduction in cost per click; 2.6x increase in web traffic.
Company / Brand: WPP Client (Mobility)
Campaign Objective Customer Acquisition
Application of AI "Open Intelligence" AI identity solution for precise and privacy-friendly targeting.
Key results (KPIs & ROI) -60% reduction in cost per acquisition (CPA).
Company / Brand: Metalex (SME)
Campaign Objective Supply Chain Optimization
Application of AI Customized AI agent for supply chain management.
Key results (KPIs & ROI) 215% ROI in the first year; 23% reduction in inventory.
Company / Brand : Clients PumpUp
Campaign Objective Conversion rate
Application of AI AI-driven advertising campaigns.
Key results (KPIs & ROI) +20% average increase in conversion rate.
Company / Brand: Real Estate Company
Campaign Objective Operational efficiency
Application of AI AI analysis of property videos for maintenance planning.
Key results (KPIs & ROI) Rental turnover period reduced from 4.5 to 2 weeks; $1.5 million saved per year.
Navigating Transformation: Universal Challenges and Strategic Imperatives
The adoption of AI, while promising, presents universal barriers. How well agencies, whether independent or part of a network, overcome these challenges will be a key factor in their future success.
The war for talent: Closing the AI skills gap
A new "war for talent" is emerging. It no longer concerns only data scientists, but also "hybrid" professionals in traditional positions (marketing, project management) who have been able to effectively integrate AI tools into their daily work. These rare and highly sought-after profiles are already starting to get higher salaries.
The skills gap is a major obstacle. 42% of companies cite a lack of generative AI expertise as a challenge, and 70% of marketers say their employer does not provide them with any training in the matter. This creates an opportunity for agencies that invest in a strong learning culture. Independent agencies, with their often more cohesive and attractive culture, can become poles of attraction for specialized talent looking to make a direct impact rather than navigate the bureaucracy of a large group. The imperative is to train and upskill existing teams to become strategic AI orchestrators.
The cost of intelligence: investment and justification of ROI
Adopting AI requires significant investments. For smaller, independent agencies, this often translates into SaaS software licenses (between €20 and €300 per month per tool per user) and consulting fees for implementation (from €5,000 to over €50,000 for custom agents). For large groups, this means massive investments of several hundred million euros in infrastructure, R&D and talent.
A major challenge for 42% of organizations is the lack of an adequate business case to justify these expenses. It is therefore essential to prove the value of AI. Studies show that 78% of SMEs in 2025, in both the European Union and the UK, using personalized AI will reach profitability in less than 18 months, and that AI-driven personalization can generate 5-15% more revenue.
These universal challenges create a new field of competition. An independent agency that builds a reputation for ethical AI practices, develops a unique training program for its "hybrid" talent, or creates a transparent and defensible ROI model for its AI services, can turn these challenges into a unique value proposition. This advantage is particularly powerful in the field of ethics, where brands, increasingly avoided to ethical and legal risk with the emergence of the European Act AI, are looking for partners who can navigate the complexities of bias and privacy with real and proven expertise, integrity. Small players are often better equipped for this too than large groups.
On the Ethics Trail: Data Privacy, Bias and Transparency
The integration of AI raises fundamental ethical questions that must be managed with the utmost rigour.
Algorithmic biases: AI models trained on historical data can perpetuate and even amplify existing societal biases (related to gender, ethnicity, etc.), leading to discriminatory ad targeting or flawed analyses. This is a major concern for 45% of companies.
Data privacy and security: The use of large data sets, including personal information, raises significant privacy concerns, especially under regulations like GDPR. 40% of organizations are concerned about data privacy.
Transparency and accountability: The "black box" nature of some AI algorithms makes it difficult to explain their decisions. Ethical practice requires full transparency to customers and consumers about when and how AI is being used. Ultimately, the responsibility for decisions made by AI should always fall on humans.
The arrival of AI is forcing a fundamental reassessment of agencies' business models. Automating tasks that were previously billed by the hour, such as generating hundreds of creative variations, is putting downward pressure on production-based fees. At the same time, the strategic advice needed to effectively drive AI—prompt engineering, data strategy, ethical oversight—is gaining unprecedented value. Value thus shifts from execution ("doing") to strategy ("thinking"). This shift fundamentally benefits agencies, especially independent ones, which are structured around high-level strategic consulting rather than large-scale execution by junior teams. They are better positioned to move to value-based pricing, annual fees for strategic oversight, or even performance-based models, justifying their costs by the expertise needed to command the AI, not by the commoditized outcome that the AI produces.
Conclusion and Strategic Recommendations: The Hybrid Future of AI-Augmented Agency
An analysis of the current dynamics leads to a clear conclusion: the future of advertising does not lie in a binary choice between independent agencies and large networks, but in the adoption of a new, fundamentally hybrid agency model.
The advent of the "Human + AI" model
The winning formula is not to replace humans with AI, but to augment human expertise with the speed and analytical capacity of AI. In this model, AI handles data processing and repetitive tasks, freeing up human talent to focus on what they do best: strategy, creative intuition, customer relations, and ethical judgment. The agency of tomorrow is less a service provider than a strategic partner in transformation. It becomes the "think tank" that guides its customers through technological complexity, ensures ethical deployment, and translates AI-generated results into tangible business growth.
Why are independent agencies naturally aligned with the current and future of AI in companies?
The central thesis of my study is reaffirmed here: the inherent agility, customer focus and specialization of independent agencies make them structurally and culturally better suited to master this hybrid model. They can use AI as a "force multiplier" for their core human skills, providing high-quality, high-impact strategic advice.
In summary, the six specific benefits of independent agencies when transforming into the age of artificial intelligence (AI) are:
Flexibility and adaptability: They are better able to adapt to the specific needs of their clients, due to their smaller and more agile structure compared to large holding companies.
Knowledge and understanding of humanity: Independent agencies have a better knowledge of human behavior, attention, and technology. This allows them to deliver optimal results with artificial intelligence.
Ability to operate at the speed of algorithms while maintaining human skills: Independent agencies can effectively integrate AI into their operational fabric while maintaining a humanized and humanized approach.
Ability to manage the potential challenges of increasing regulations: Independent agencies have more pronounced governance capabilities to deal with increasing AI regulations in the advertising industry.
Value-Centric Approach: The future winners in the era of artificial intelligence will be those who can focus on delivering value to customers while effectively integrating AI into their operations.
Investment in training and infrastructure: Independent agencies invest more quickly in training and infrastructure to be able to manage the potential challenges that small businesses may face.
A few modest policy recommendations in conclusion
For brands and advertisers: When selecting an agency partner, look beyond the scale of their AI investments. Prioritize the agency's ability to integrate AI into a cohesive strategy, the depth of its specialized talent, its commitment to transparency and ethical governance, and its ability to act as a true strategic partner.
For independent agencies: Capitalize on your strengths. Invest in the continuous training of your teams to become expert AI orchestrators. Develop a clear stance on ethical AI. Build flexible, high-performance technology stacks tailored to customer needs. Highlight your agility and high-level consulting as your key differentiators.
For large groups: Continue to leverage your scale in data and technology, but focus on empowering your individual agencies to innovate and adapt. Avoid a rigid, top-down approach that stifles creativity, and make sure your proprietary platforms are truly best-in-class and not just internal consolidation tools. The ultimate measure of success will be customer outcomes, not adoption rates of your platforms.
Do not hesitate to contact me via messaging https://www.linkedin.com/in/michellubac/
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Author: Michel Lubac, Philemonday Agency
Date: September 23, 2025
PHILEMONDAY AGENCY, Penhurst House, 352 Battersea Park Road, London SW113BY, UNITED KINGDOM
More information: +44 (0) 560 384 6936
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