Agency Business Models Market: GWA Study: CMOs Shift In-House, Agencies Need New Models

The German Association of Advertising Agencies (GWA) has published a white paper titled "The New Value. Agencies in the Tension Between AI Maturity and Customer Expectations." Based on surveys of 170 CEOs/CMOs and 78 agency executives, the study reveals that 80% of marketing decision-makers plan to move more work in-house thanks to AI, particularly in research (52%), creative (50%), and production (44%). However, only 8% expect agency roles to shrink, suggesting agencies will take on new strategic and integration tasks. The study highlights that AI is deeply embedded in agency workflows, with 76% having AI-based offerings, yet 67% cite talent shortages as a top hurdle. It challenges assumptions that AI lowers costs, pointing to new costs in licenses, infrastructure, and governance. Only 10% of companies have fully integrated AI into their processes, indicating an industry in transition.