Madison Ave. A Dead End?
Eight months in, Brian Lesser isn’t just sweeping the floors at GroupM-he’s bulldozing the building. The world’s biggest media buyer is now a cautionary tale, as 45% of its North American workforce gets “reorganized” (read: laid off, reassigned, or simply vanished), and the once-mighty GroupM brand is quietly euthanized in favor of the corporate moniker “WPP Media”. If you thought this was a rebrand, think again. This is a root-and-branch rewrite of the agency playbook.
Lesser’s message is blunt: the old agency model is obsolete. The future? Agencies as software platforms-lean, fast, and ruthlessly automated. Generative AI didn’t just spark this revolution; it’s the engine driving it. The implications are seismic. Less headcount, more code. Campaigns run by algorithms, not armies. If you’re an AdTech vendor, publisher, or advertiser, you’re either integrating seamlessly or you’re out.
This isn’t a trim. It’s a deletion. WPP Media isn’t just changing its name; it’s erasing the last two decades of Madison Avenue orthodoxy. The only question: who’s bold enough to follow?
The Two “R’s”: RTO and Recession
Return-to-office (RTO) and Recession are the twin wrecking balls for the ad world. RTO is flushing out the remote diehards (hope you like the view from your mountain cabin), but if you do come back, you’d better speak fluent AI. That’s the new baseline. As for recession? Expect companies to cut 20% of staff-and guess who’s first out the door? Those without AI on their résumés.
The Agency Clock Is Ticking
Advertising as we know it could end in less than two years. Maybe less. Zuckerberg’s already declared the agency model dead, rolling out a self-serve, AI-powered ad platform that cuts out the middleman entirely. Sir Martin Sorrell’s S4 Capital just posted an 11.4% Q1 sales drop-a canary gasping in the digital coal mine.
This isn’t just about macroeconomics or tariffs. Clients are quietly in-housing with the same AI tools agencies used to sell as secret sauce. AI is democratizing efficiency and creativity for everyone, not just the “creatives.”
We’ve seen this very publicly over the past few weeks with Dualingo, Shopify and Klarna all taking an AI first approach. I am in favor of an AI Forward approach and suggests consideration and integration rather than wholesale elimination.
The Brutal Math of AI
One junior with Midjourney can replace a fleet of $50-$70K designers.
AI drafts campaigns faster than your team
AI analytics are already outperforming your insights department.
Sorrell, ever the optimist at 80, says things will turn around in H2. But the trend is clear: brands don’t need agencies for what they can do themselves with AI.
So, What’s Left for Agencies?
Radical Honesty: Stop selling what clients can now do in-house with AI.
Strategic Brains: Double down on business insight-AI can’t replace real strategy (yet).
AI Mastery: Use AI in ways clients can’t-deliver value, not just services.
Agencies aren’t extinct. But their purpose is unrecognizable.
Old Model:
Creative concept → Design → Media plan → Traffic → Report
New Model:
Strategic insight → AI workflow design → Internal capability building → Outcomes
Agencies must stop fighting the shift and start leading it. Otherwise, those recently laid-off designers become your fiercest competitors-solopreneur super-agencies, powered by the same AI you ignored.
Want to survive? Get AI fluent.
Follow me for AI consulting or one-on-one training. I bring 30 years of branding, marketing, and tech to the AI frontier. The future of Madison Ave? It’s not a dead end-but it’s a sharp turn, and most won’t make it.
Sources:
https://www.cityam.com/are-we-witnessing-the-slow-death-of-advertising-holding-companies/
https://www.adweek.com/agencies/wpp-kill-off-groupm-rebranding-wpp-media/
AI Roundup
Going ‘AI first’ appears to be backfiring on Klarna and Duolingo
Klarna is hiring again after replacing employees with AI. Meanwhile, Duolingo is facing blowback on social media from its AI-first strategy. [Images: Syda Productions/Adobe Stock, Bits and Splits/Adobe Stock] Artificial intelligence might be the future of the workplace, but companies that are trying to get a head start on that future are running into all sorts of problems. Klarna and Duloingo have been some of the poster children for the “AI-first” workplace.
100 leading AI scientists map route to more 'trustworthy, reliable, secure' AI
The landmark Singapore Consensus comes at a time when the giants of generative AI - such as OpenAI - are disclosing less and less to the public.
Take a Tour of All the Essential Features in ChatGPT
If you missed WIRED’s live, subscriber-only Q&A focused on the software features of ChatGPT, hosted by Reece Rogers, you can watch the replay here.
Google launches AI startup fund offering access to new models and tools
Amazon and Microsoft, OpenAI's principal investor, are backing generative AI startups with hefty investments and developing their own technologies.
3 AI prompts you can use to be more successful at work, according to Anthropic’s engineers
Experts say you’re more likely to be replaced by peers who know how to use AI—rather than the tech itself.
El Sailon Tonight! – Last Call
May 13, 5:30-7:30 pm | BOXCAR
AI and the Neuroscience of Leadership
How artificial intelligence impacts the algorithm of the human brain
Curt sits down with Lydia Knight for a fireside chat to explore a timely and provocative question: How does the prevalence of artificial intelligence impact how we think about each other as humans. You can still buy tickets or pay at the door.
Want to advertise in RealmIQ+ or our Podcast?
If your company is interested in reaching an audience of AI professionals and decision makers, you may want to advertise with us.
Empowering AI Startups
RealmIQ: AIccelerator is dedicated to elevating AI startups by offering comprehensive support in strategy, product development, branding, team building, and securing investor access. Our services span the entire spectrum, catering to both nascent startups and growth-stage companies, with a special emphasis on those in later stages demonstrating proven revenue. Apply Now.
I provide one-on-one coaching sessions tailored to your specific needs and industry, within the following areas of AI: Mindset, Addressing Fears, Concerns or Risks, Forming an AI Task Force, AI Adoption Strategy, AI Use-Case Discovery, AI Tool Evaluation, Generative AI Training, ChatGPT Training, and AI for Marketing.
Lights, Camera, Algorithm: The New Power Player in Tinseltown. Hollywood doesn’t have a choice anymore. AI has arrived—on set, in the writers’ room, inside the edit bay, behind the camera, and in the boardroom. If you don’t get my MediaSlam Newsletter, you can read my latest article here.
Substack Heroes
Please read and subscribe to the best source on legal and ethics in AI on Substack.
Podcast News
"AI will democratize creativity, but the people who push its boundaries will stand out."
– Andy Beach
I had the opportunity to sit down with the former Media & Entertainment CTO of Microsoft Andy Beach and we unpacked many things about AI including AI-driven workflows, copyright concerns, ethical AI, and how AI is reshaping production, content distribution, and consumer interaction. Watch and subscribe here.