Build a Better Agency Podcast

Ep 550 Five Opportunities for Agency Evolution with Drew McLellan


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Welcome to another energizing solo episode of Build a Better Agency! This week, host Drew McLellan draws on his 25+ years of agency experience to deliver both a rallying cry and a clear-eyed reality check for independent agency owners: the chaos swirling around AI, consolidation, and economic uncertainty isn't the threat it appears to be — it's an invitation. For owners who are willing to evolve, this may be the best decade in history to run an independent agency.

Diving deep into the macro forces reshaping the industry, Drew McLellan unpacks the five trends that every agency owner needs to understand right now — from the collapse of institutional trust landing squarely in your lap, to the cracks forming inside the big holding company networks, to the seismic shift in how clients find and hire agencies. He shares data from AMI's own 2026 Agency Edge Research alongside findings from the Edelman Trust Barometer, painting a compelling picture of why independent, niche, founder-led boutiques are uniquely positioned to thrive while the giants stumble.

Beyond the trends, Drew maps out five concrete opportunities your agency can pursue in the next three to ten years — from repositioning as a strategic advisor rather than a vendor, to monetizing AI the right way, to riding the in-house reversal as brands unwind internal teams they can no longer sustain. You'll hear real data on what's happening to AGI per FTE, why generalist agencies are losing ground, and what the consulting world can teach us about where agency revenue is headed next.

If you're tired of feeling anxious about the future and ready to see the opportunity hiding inside the uncertainty, this episode is essential listening. Whether or not you make it to the Build a Better Agency Summit in May, Drew McLellan's guidance will challenge you to stop waiting for the dust to settle — and start building the agency you actually want to own.

A big thank you to our podcast's presenting sponsor, White Label IQ. They're an amazing resource for agencies who want to outsource their design, dev, or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here.

What You Will Learn in This Episode:
  • Why this is the best decade to own an independent agency for those willing to evolve their business model
  • How consolidation among holding companies creates lucrative opportunities in the neglected middle market segment
  • Five major opportunities that will define successful agencies over the next decade
  • Why AI adoption gives small shops the sophistication level that previously required holding company resources
  • How to transform from vendor relationships into strategic advisor partnerships that command premium pricing
  • The specialization imperative that delivers 10-20% higher margins than generalist agencies
  • Why your agency is positioned as the most trusted entity in the new economy
  • How to monetize AI properly by focusing on outcomes rather than tool usage
  • The workforce evolution requiring fewer FTEs but more strategic value creation
...more
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