In 2023, agencies battled client uncertainty and shrinking budgets while transforming to adapt to the widespread possibilities and implications of generative AI.
Organic growth slowed across agencies last year, particularly at creative and digital shops, many of which stayed flat or declined year on year. Some even dragged down their parent companies’ revenue overall.
However, many still managed to keep their creative output strong despite financial challenges, pushing the boundaries of brand work that didn’t just win industry accolades, but tapped into culture and drove business results for brands.
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While all eyes were on generative AI last year, UM found much success by doubling down in another growth area. The IPG agency leaned hard into commerce by launching Marva’s, a shopping analysis tool capable of testing new marketing tactics, and Shoptimizer, a retail budget optimization gadget that increased incremental sales for several global CPG brands by 15%.
Read the full report on Campaign.