Agencies Are Under Attack - Let’s Not Sugarcoat it: Running an Agency is Getting Harder…
… Not just a little harder. Systemically harder. Margins are thinner. Expectations are higher. Competitors are hungrier – and cheaper. The platforms have changed, the buyers have changed, and the old ways of selling expertise just aren’t cutting it anymore.
So if you’ve felt like you’re swimming in a red ocean, trying to charge decent fees while a thousand “agencies” undercut you from a laptop and a Wi-Fi signal, you’re not imagining things.
The game has changed. This article is about how you adapt – or get left behind.
The Problem: Agencies Are Under Attack
Most agencies today are stuck in the middle – too broad, too average, and too replaceable.
You're charging mid-market prices. Competing on capability, not clarity. Spreading your team thin across dozens of service lines. And wondering why growth has stalled, why profits are mediocre, and why it feels like you're working harder just to stand still.
Here’s what that looks like:
Broad positioning (read: “We do stuff for anyone.”)
Commoditised service lines (web builds, PPC, SEO – take your pick)
Pricing pressure from freelancers, platforms, and AI
Clients expecting more, paying less, and often knowing just as much as you do
The result? Flat growth. Frustrated teams. And a slow erosion of relevance.
It’s not just annoying. It’s existential.
Where’s the Attack Coming From?
Let’s name the threats clearly. There are five core forces putting the squeeze on your agency:
1. Freelancer Floodgates
Every day, two smart kids leave uni (or don’t), open Canva, set up a Squarespace site, and boom – they’re “an agency.” They undercut your pricing by half and pitch the same services.
Sure, they won’t win the six-figure retainers. But they’ll chip away at the £10k projects, then the £5k ones, until the floor drops out from under you.
2. Platforms Are Eating the Bottom of the Market
Self-serve design and ad tools – Canva, Webflow, Wix, even Meta’s ad platforms – have empowered clients to do the basics themselves.
That’s not inherently bad. But it means your bottom-rung services are being automated or devalued. Clients want “more for less” because, frankly, they can get it.
3. AI Isn’t Just a Tool – It’s a Disruption
AI helps you deliver faster. Great. But it also helps your clients think they don’t need you.
Generative AI means the line between “expert” and “resourceful amateur” is getting blurry. And the more generic your offer, the more replaceable you become.
4. Clients Are Smarter
Ten years ago, clients came to you for specialist knowledge. Now? They’ve taken the courses, watched the YouTube breakdowns, and maybe even run an agency themselves.
They still need help – but they’re scrutinising the value harder than ever.
5. Global Teams Are the New Normal
Remote work has made the world flatter. Clients are increasingly open to offshoring and nearshoring. Why pay UK rates if they can get a comparable result from a Polish dev team or a Filipino strategist?
(And yes, some of those teams are brilliant.)
If You Think It’s Tough Now...
Fast-forward 2–3 years.
Do you imagine it’ll get easier to win clients, charge more, or deliver at a healthy margin?
Didn’t think so.
The agencies who don’t adapt now face a slow decline – pricing pressure, squeezed delivery, team burnout, and eventually, irrelevance. Death by a thousand cuts.
That’s the bad news.
The Good News: There Is a Way Out
There’s no silver bullet. But there is a path – and it involves three big shifts:
1. Go Big on Brand
Your brand isn’t your logo. It’s not your tone of voice. It’s not your colour palette.
It’s your position in the market – your reputation, your identity, and your ability to signal quality and expertise in 10 seconds flat.
If your site looks like it was built on a weekend in Canva by your cousin’s mate, it’s not good enough.
You need to look like a premium, specialist firm. And you need to sound like one too. That means:
Clear expertise, clearly presented
No vague promises (“digital solutions for tomorrow’s world”? Come on)
Visuals that match your fees
Perception matters. A strong brand gets shortlisted. A weak one doesn’t get opened.
2. Tighten Your Positioning
Here’s the uncomfortable truth: if you wouldn’t remortgage your house to fund your marketing plan, your positioning isn’t tight enough.
Tight positioning lets you say: “We serve this audience, with this problem, using this unique method.”
Not: “We build websites for SMEs and also do a bit of social.”
Here’s how to tighten up:
Niche by sector: Pick a vertical you understand better than anyone else.
Niche by geography: Dominate your region.
Niche by problem: Own a particular type of transformation (e.g., “From messy HubSpot setups to fully-automated lead machines”).
Niche by model: Productise. Package. Be known for how you deliver, not just what.
When you combine these, the number of direct competitors shrinks dramatically. Your marketing becomes easier. Your sales cycles get shorter. Your profit margin climbs.
And you stop sounding like every other agency.
3. Double Down on Marketing (Finally)
Let’s be blunt: most agencies are crap at marketing themselves.
You know you should be better. You tell clients to build funnels, optimise CTAs, generate case studies – and then you post once a month on LinkedIn and wait for referrals.
We ask agency owners: “How would you rate your agency marketing, out of 10?”
Most say 3.
That’s a massive opportunity.
The agencies that build a strong brand, pair it with tight positioning, and actually market themselves – consistently, intentionally, and at scale – will pull away from the rest.
Build your machine. Nail your funnel. Don’t just hope for leads. Generate them.
And Keep a Ruthless Eye on the Numbers
You need margin. Now, not later.
You need pricing that reflects value, not time.
You need to ditch underperforming clients, services, and teams. Even the ones you “like.” Especially the ones you’re quietly losing money on.
Build financial discipline into your ops. Watch:
Gross margin – not just revenue
Utilisation – across the board
Cashflow – the real oxygen
Pricing – are you still charging what you were 2 years ago?
You can’t scale chaos. And you can’t innovate from survival mode.
Recap: The Four Moves You Need to Make Now
Let’s boil this down. If you want to be one of the few agencies that wins in this new landscape, you need to:
Upgrade your brand – Look the part. Be unmistakable.
Narrow your positioning – Serve someone specific. Solve something valuable.
Get serious about marketing – Don’t be a cobbler with no shoes.
Run a tight commercial ship – Margin isn’t a bonus. It’s the point.
None of this is optional. The agencies doing it are already pulling away.
One Final Thought
We’re not in a “blip.” We’re in a shift.
You can’t solve a systemic change with tactical tweaks. You need to step back, challenge your model, and rebuild intentionally.
So ask yourself:
If we keep doing what we’re doing… Will we still be relevant in three years?
If the answer is anything but a confident yes, it’s time to move.
This is your nudge. You’ve got a short window before the war of attrition sets in.
Don’t wait until it’s too late.
Want to chat about it? Email me on Janusz@gyda.co
