By Kimeko McCoy

For years, small- to medium-sized businesses without big budgets turned to independent creative shops for their ads. Now, tech tools like Google Pomelli and Canva Grow are offering new AI-powered agency-in-a-box tools, promising everything from brand management to campaign execution. As tech behemoths vie for SMBs (and their ad dollars), independent agencies may soon find themselves feeling squeezed.

“It’s cynical almost because it’s the agencies that have built the advertising business together with Meta and TikTok and Google,” said Rogier Vijverberg, founder and head of creative — or his formal title at the creative shop SuperHeroes, “chief creative hero.” He added, “Now, they are competing with [advertisers] as well.”

Agencies on the defense

As it currently stands, agency budgets are at their lowest in 10 years, with the share of marketing budget going to agency fees reduced, according to Jay Wilson, vp analyst at Gartner. According to Gartner’s 2025 CMO spend survey, 39% of CMOs plan to cut back on agency budgets this year. Meanwhile 22% of CMOs said generative AI has enabled them to reduce their reliance on eternal agency partners for creativity and strategy building, per the report.

Continue reading this article on digiday.com. Sign up for Digiday newsletters to get the latest on media, marketing and the future of TV.

…read more

Source:: Digiday

Author: Aaron