Why agency relevance may matter more than scale

An editorial interpretation of the conversation, distinguishing the guest’s arguments from verified business outcomes.

Consolidation under an AI deadline

Rishad Tobaccowala sees a future for advertising, media and marketing, but questions whether consolidation prepares agencies for it. Discussing the Omnicom–IPG merger, he acknowledges potential benefits from media scale, data integration, lower duplication and reduced industry capacity. His concern is that a lengthy integration could absorb attention while AI changes client needs. He treats the merger’s prospects as a judgment call, crediting the people involved rather than predicting inevitable failure. He is especially interested in companies built around AI, distributed talent and partnerships that scale capabilities rather than simply adding employees.

The specialist’s competitive position

Against consultancies, he argues that agencies should deepen strengths in storytelling, design, provenance, brands, emotion and the daily work of delivery. Relationships with the managers who implement ideas matter alongside access to the boardroom. His strategic choice is between substantial scale and a focused, world-class specialism, supported by partners. He also urges leaders to think like immigrants: approach the category as outsiders, challenge incumbents as underdogs and accept short-term discomfort for longer-term opportunity. Technology becomes useful through changes in leadership, culture and the business model.

Redesigning the whole company around AI

For Tobaccowala, AI belongs inside the strategy of the whole business. Using shared tools is insufficient differentiation; the opportunity is to reconsider what the company exists to deliver. He expects agents to undertake more work, while people provide insight, imagination, iteration and oversight. His enthusiasm for smaller teams and flexible work does not imply one arrangement for everyone: he proposes office-based training for newcomers, more presence from senior leaders and greater flexibility for others, supplemented by in-person gatherings. His claims about workforce composition and AI’s speed remain forecasts and observations offered in the conversation, rather than universal benchmarks.

The slow transition beyond timesheets

The commercial thread is to sell valuable results rather than hours. He envisages agencies reducing reliance on staffing fees and sharing measurable client upside, but describes a transition taking years and leaves the appropriate percentage open. Platform automation still leaves room for agencies to connect channels, understand consumers and contribute complementary capabilities. In pitches, he recommends working backwards from the action sought, then supplying insight, imagination, an idea and supporting examples. For existing clients, regular senior attention, fresh thinking and managed team changes accompany the continuing obligation to deliver today.