Agencies - how are you thinking about AI? What is AI's impact on agencies? What is the potential? What are generative AI's capabilities and limitations - and where can your team shine? Where does legal fit into all of this? As AI advances, how can agencies prepare for the future? Paul Roetzer sat down with Mike Linton on the amazing CMO Confidential podcast recently - it's worth 30 min of your time! YouTube: https://lnkd.in/g3mfZ6Xm Apple Podcasts: https://lnkd.in/gSJmHkQA Spotify: https://lnkd.in/g2uKUA9t #AI #agencies #AIagency #artificialintelligence #CMO #CMOConfidential #agencylife #marketing Jeff Culliton
Is Artificial Intelligence An Extinction Event For Marketing Agencies | Paul Roetzer |
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I'm shifting the focus of our services away from HubSpot implementation and support toward advanced AI automation. The generative AI tools are impressive and create value at scale. At the same time, they are limited when it comes to the number of sequential steps they can take autonomously and how they can integrate with other marketing and sales tools (e.g., CRMs). But, when you combine a specialized GPT (or several of them) with an integration tool like Make, you 10X the functionality and value of these tool. The best part is that if done right, you don't necessarily need to overhaul existing sales and marketing processes, and you can get these tools into your team's hands in a controlled, easier-to-manage way. I see automated AI-empowered actions as the most significant opportunity for agencies moving forward.
I think this will be the area that must adapt the fastest. I grew up in ad land, 15 years, and I work with agencies and have for 20 years and I can tell you with no uncertainty that much of what an agency can do our AI can do and we have AB tested it. We can do in minutes what an ad agency would take weeks. The cost differential is breathtaking. The average agency charges $5,000 to $20,000 per month. They have 7-8% margins so they tend to provide templates. Our AI will be priced somewhere around $20/user/mo (depending on variable cost and differential in Llama open sourced costs) and we will have north of 85% margins. Agencies must adapt by integrating the very technologies that will disrupt them. It's the old adage, "better to put yourself out of business before someone else does." AI won't replace them. The people who do what they do (like me) will.
Josh Troche
2w
Right now, there are some great tools. As with any other tool, you have to learn how to properly use it for it to be effective. There are some amazing pliers out there and there are some amazing hammers out there. We've all seen people using pliers as hammers 😁 If the tools get better, how we use them will change. Knowing how to use the basic tools will make it so much easier to be able to use the more complex tools as they grow
Most brands struggle with shiny object syndrome today. Thousands of marketing tools, countless tactics and options. That will increase tenfold with AI. Smart agencies will continue to be strategic partners that provide a framework for navigating all the noise to deliver a positive business outcome. Just like today... Some brands will DIY marketing and make a mess of it. Others will DIY with great results. Some brands will hire experts who know what they're doing. Others will hire "experts" who don't.
AI is deflationary and provides the ultimate economy of scope. All economic trade is now begining to deflate to the cost of compute. Some industries faster than others. What does that mean? It means your economic sphere is on a journey of absorbtion. Projects created and managed move from 500k in billable services to $50 in energy over the next handful of years. Is it existential to your business model? Of course it is.
It was a great conversation. While “extinction event” might seem extreme, it’s only a matter of time before many clients use AI to speed up in sourcing. Agencies that stick to the old Model are going to incur a lot of risk to their existing book of business.
It will be a long time before this happens but in the meantime it can help us do our work.
Brian King
2w
Anyone believing this is going to kill the agency clearly doesn't understand humans innate desire to consume and create. I fully expect we're going to see a 10x in production / consumption, at least at a far greater multiplier than the likelihood of the AI eating the job.
Strategist | Storyteller | Creative | AI Adoption Leader | RealmIQ: SESSIONS Podcast Host | Product Manager | Brand Architect | Former @webershandwick @universalpictures @trailerpark
2wI predict a year from now, marketing agencies, social agencies, pr agencies will be half their size. Their clients, brand managers, social media managers will embrace AI and do the work themselves. This right-sizing is not extinction, it is business transformation. As ad agencies are repositioning themselves as Consultancies, automation is already taking its toll. Any agency positioning themselves as AI Agency risks their clients perception and demand that they lower their prices, decrease their teams and the whole billable hours model implodes. The goal for agencies, let alone creatives, is to show the value of an authentic creative-centered AI process and result. Creativity is Human. The pendulum will swing. Read this - https://www.realmiq.com/blog/embracing-the-future-upskilling-creative-talent-for-the-age-of-creative-centered-ai-ccai