Forrester Predicts Marketing Agencies Will Divide
Marketing agencies will split into orchestrators and executors due to AI, according to Forrester. This shift may impact their business models.
Original reporting · forrester.com
Original: “Predictions 2027: Marketing Agencies Divide Between Orchestration And Execution”
Read “Predictions 2027: Marketing Agencies Divide Between Orchestration And Execution” at Forrester →
How this was written. Awesome B2B wrote this article with a language model from Forrester’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Forrester’s report
- Marketing agencies will divide into orchestrators and executors due to AI
- Brands will become their own content factories, insourcing more creative and production capabilities
- Marketing operating systems will become a key area of competition for holding companies
Forrester reported that marketing agencies will fall into two categories in 2027: orchestrators and executors. Orchestrators will help CMOs redesign operating models and govern AI adoption, while executors will focus on specialist capabilities that AI cannot automate.
According to Forrester, brands will become their own content factories, with 67% of B2C marketing decision-makers planning to insource more creative and production capabilities. This may lead to enterprises bringing up to 60% of templated content production in-house.
The winners in this new landscape will be boutique and large agencies that retain top talent and deliver differentiated creative thinking and strategic guidance. Marketing agencies will face the choice to compete with insourced AI content studios or transcend rote content automation with expertise.
Marketing operating systems will become a key area of competition, with holding companies investing in proprietary platforms to drive cost efficiency and marketing efficiency. Half of global holding company revenue and service delivery may flow through these systems.
Holding companies' proprietary platforms will become their primary competitive moats, as well as marketers' engines for marketing efficiency and brand differentiation. Midmarket and independent agencies may partner with third-party operating systems to remain competitive.
Three-fourths of agency RFPs will require AI transformation expertise, with CMOs seeking partners that can help them achieve enterprise AI leadership. Agencies will need to add new products and partnerships to remain competitive in this area.
Questions and answers
What will happen to marketing agencies in 2027?
Marketing agencies will fall into two categories: orchestrators and executors, according to Forrester.
How will brands change their content production strategies?
Brands will become their own content factories, with 67% of B2C marketing decision-makers planning to insource more creative and production capabilities.
What will be the key area of competition for holding companies?
Marketing operating systems will become a key area of competition, with holding companies investing in proprietary platforms to drive cost efficiency and marketing efficiency.
