Why Creative Agencies Are More Vital Than Ever in an Age of AI and Fragmentation

A Big Mission Ahead for Creative Agencies

Creative agencies often face criticism from consultants, analysts, and self-styled “growth experts” who claim the industry is broken or obsolete. While it’s tempting to listen to this noise, such defeatism misses the mark. The truth is, creativity remains a powerful force in business growth.

Recent data backs this up. The Dentsu Creative Global CMO Survey 2024 found that 83% of CMOs believe creative ideas can transform their businesses, and 81% say creativity is more important than ever. Research from Nielsen and Meta shows that high-quality creative execution drives 35% greater campaign effectiveness on Meta platforms.

The real threat isn’t AI tools or new technologies—it’s the constant negative talk that saps confidence. This outlook can discourage talented newcomers who want to build careers in creative fields. Having worked through multiple “agency is finished” narratives and rebooted a legacy agency successfully, the reality is clear: we’re still here, evolving, and creating value.

At the core of our industry is the ability to create something from nothing. Technology changes, but the mission stays the same. We don’t just run media or code; we craft experiences that people can see, hear, and interact with. It’s time to own that truth confidently.

Facing Growing Uncertainty

With global uncertainty rising, old growth models based on globalization won’t cut it anymore. Even in fast-growing ASEAN markets like Vietnam and Indonesia, the focus is shifting to boosting local consumption. This requires hyper-local, intentional creativity—and no one knows how to do that better than agencies.

Clients need faster, sharper, and more original ideas delivered efficiently. Yet, with AI tools flooding the market, sameness has become the default. Brands can’t grow on templates alone; they need bold storytelling and demand generation rooted in data and integrated marketing communication (IMC).

Expecting generative AI to do all the creative heavy lifting is unrealistic. AI should be treated as a tool that multiplies creativity, not replaces the idea. The human touch remains essential because agencies are authors of meaning and builders of culture.

Creative and Media Must Think Together

The media landscape is fragmented like never before. Platforms like TikTok, YouTube Shorts, and retail media networks dominate attention, making it crucial for creative and media teams to collaborate closely. Campaigns that separate creative from media risk poor contextual fit, wasted impressions, and lower engagement.

According to WARC, integrated creative and media strategies can deliver up to 2.6 times higher ROI than disjointed efforts. Nielsen research shows that creative quality drives almost half of campaign effectiveness but only reaches full potential when aligned with media placement, timing, and targeting.

Brands increasingly demand measurable results—like better ROAS or lower acquisition costs. Collaboration between creative and media ensures storytelling is both emotionally compelling and optimized for conversion. Industries such as healthcare, fintech, and edtech are ripe for creativity-led solutions. For example, focused creative work in medical communications has outperformed years of traditional campaigns.

Some agencies—often independent and entrepreneurial—are winning by embracing technology and refusing to be defined by it. They don’t waste time fighting change; they build with it.

Fragmentation in agency roles often comes from clients hiring specialists for every channel, hoping more partners improve results. Instead, this leads to messaging confusion, clumsy execution, and media waste, alongside declining fees and compressed timelines. To get better ideas and cohesion, clients must reduce fragmentation and support agencies with clear mandates and fair remuneration.

Moving Forward with Purpose

The future belongs to agencies that show up with intent, form the right partnerships, and lead with bold ideas. The mission hasn’t changed—only the tools have. It’s time to stop listening to the noise and get back to building meaningful creative work that moves people and businesses alike.