For the past several years, productization has been a consistent topic in our industry, however, since we included questions on it in our latest report (RSW/US 2025 New Year Outlook Report), I’ve had several agency principals ask about it, and what exactly it looks like.
So, for the uninitiated, and even for those agency principals that are initiated, consider this a basic primer on productization for ad agencies, including the associated pros and cons.
What is Productization?
In recent years, more advertising agencies have increasingly adopted the productized services model, which involves standardizing and packaging services with predefined scopes and pricing.
More formally, productization involves transforming traditional, bespoke agency services into standardized, packaged offerings that clients can purchase as defined programs or products.
Instead of tailoring every project from scratch, agencies develop repeatable solutions with set deliverables, timelines, and pricing structures.
RSW 2025 New Year Outlook Report: Productization
We were pleased to have Tim Williams of Ignition Consulting Group, provide the following questions.
The first, to agencies:
To what degree have you ‘productized’ your business, where you are selling programs/products instead of services and capabilities?
A majority of agencies (52%) indicated they “sometimes” productize their business by selling programs or products instead of traditional services and capabilities. marketers remain more inclined toward purchasing services and capabilities.
We then asked Marketers:
Do you prefer buying ‘productized’ offerings from marketing agencies or prefer buying services and capabilities?
38% of marketers prefer “services and capabilities” somewhat more, while another 27% prefer “services and capabilities” much more — compared to just 8% expressing any preference for productized offerings.
Tim William’s Take
Per Tim, “Our view is that productization (along with burying the billable hour) is the most important trend not only in the agency industry, but in professional services across the board. Law firms, accounting firms, architects, and engineering consultancies are all engaged in moving toward a productized business model.”
“We expect these findings (on the marketer side) to change within the next few years as marketers acclimate to the concept of productized services. We predict a strong preference to emerge for programs and products over the typical bullet-point list of agency services and competencies.”
What Agencies Are Currently Offering Productized Services?
While you can Google or ask your generative AI of choice this question, I wanted to provide you 5 examples since you’re here:
- Loganix: Specializing in SEO and digital marketing, Loganix offers productized services such as link building, local SEO, and content creation. Their services are packaged with clear deliverables and pricing, allowing clients to select and purchase services directly from their website.
- Scribly: A content marketing agency, Scribly provides scalable content packages tailored to various business needs. They transitioned from offering unlimited copywriting to structured content packages, resulting in improved client retention and streamlined operations.
- Design Pickle: Offering unlimited graphic design services for a flat monthly fee, Design Pickle has productized graphic design by providing clients with a consistent and scalable solution for their design needs.
- WP Speed Fix: Focusing on WordPress speed optimization, WP Speed Fix offers predefined service packages to improve website performance. Clients can choose from various packages with set deliverables and pricing, making the optimization process straightforward.
- FATJOE: A white-label SEO and link-building service provider, FATJOE offers productized services to agencies looking to outsource specific tasks. Their services are clearly defined with transparent pricing, allowing for easy integration into existing agency offerings
Sensing a pattern here?
SEO, Content Marketing, WordPress?
And if you search around, you’ll see a lot of these types of agencies productizing, which makes sense.
What you’ll see a good deal of in 2025, in terms of successful agency productization, are those firms combining rigorous process standardization with niche expertise, leveraging AI to maintain margins while delivering consistent results.
That’s all well and good, but of course, many agencies can’t so easily fit into the above description.
Nevertheless, According to HubSpot 75% of agencies offering productized services report improved operational efficiency, and 60% see faster scaling compared to custom services.
But what about creative agencies, for example?
I dug around and found several examples of how creative firms could get in on the action:
Ways a Creative Agency Can Productize Services
1) Brand Identity Packages
- Fixed deliverables: Logo, color palette, typography, brand guidelines
- Standard pricing based on business size (e.g., startup vs. enterprise)
2) Social Media Content Bundles
- Monthly package of posts, captions, and design templates
- Different tiers based on the number of posts and platforms
3) Video Production Kits
- Pre-defined scope for social media ads, explainer videos, or testimonial reels
- Set pricing based on length, complexity, and edits
4) Website Design Packages
- Templated website builds with predefined structures
- Optional add-ons like eCommerce functionality or SEO setup
- Fixed number of slides and revisions per package
Productization for Ad Agencies – Pros & Cons
Let’s start positive and talk about the Pros first.
I found a thorough and transparent Reddit thread (don’t roll your eyes) that I’ll take examples from, but I encourage you to read the whole thing to get very specific monetary and process examples.
Top 10 Pros of Productization
- Predictable Cash Flow: Prepaid monthly models eliminate payment chasing
- Scalability Through Systems: Minimal overhead
- Client Acquisition Simplicity: Fixed pricing reduces negotiation time – “No proposals needed”
- Automated Referral Engines: One user gained SEO partner referrals through standardized 100/100 page speed websites
- Labor Cost Control: In one example, $125/hr internal rate enforcement keeps margins at 65%+ for managed services.
- Niche Specialization: Micro-offerings like $8k e-commerce packages
- Reduced Client Management: “Cancel anytime” models coupled with template libraries cut revision requests by 80% in one example
- Enterprise Upsell Potential: Productized services become gateway to premium custom work
- Operational Transparency: Clear scope boundaries reduce “endless Zoom call” culture
- Talent Optimization: Global teams enable 24/7 service delivery at 20-30% of domestic labor costs
These look pretty tasty.
Would they all apply to your firm currently?
For many, the answer is no.
But could you adapt this approach and get there? Possibly.
Well, let’s look at the cons.
Top 10 Cons of Productization
- Margin Erosion Risk: Copywriting services dropped to 20% margins after outsourcing in one example.
- Quality Perception Issues: “Big players never choose this – they think it’s for broke clients”
- Scope Creep Trap: Unlimited editing packages at $1.5k/mo risk negative margins with active clients
- Talent Bottlenecks: $987/mo packages require expensive specialists to maintain quality.
- Commoditization Pressure: Flood of identical $1k/mo design offers will; inevitably spark price wars.
- Implementation Complexity: Requires “years” of process refinement to avoid chaos.
- Client Education Burden: 68% of buyers still expect heavy customization despite fixed packages
- High Churn Vulnerability: Easy cancellation policies lead to 30%+ monthly attrition in some models
- Service Limitations: SEO deemed “unpackageable” except for basic GMB optimization.
- Volume Dependency: Requires 100+ clients to offset automated system costs
Several of these give very specific situations, to be fair, but the potential difficulties nevertheless are clear.
Where Does This Leave Agencies?
The Agency Perspective on Productization
For agencies, productizing their services offers the potential for greater scalability, efficiency, and profitability.
By creating repeatable, packaged offerings, agencies can simplify engagements, reduce complexity, and improve margins.
However, from our RSW report, the fact that only 2% of agencies “always” and 11% “usually” sell productized services suggests that many are still figuring out how to integrate this model into their business.
Meanwhile, the majority—over half—”sometimes” productize, indicating that while they are experimenting with this approach, they may not yet be (aren’t) fully committed or confident in its long-term effectiveness.
Marketer Preferences for Services and Capabilities
From the marketer’s perspective, the preference for customized services over productized offerings likely stems from their need for tailored solutions to address unique business challenges.
Marketers often view agencies as strategic partners, valuing high-touch, customized support over prepackaged solutions.
Meanwhile, the 27% of marketers who expressed “no preference” in our report may suggest that some clients are open to productized offerings in certain situations, though this openness is not yet widespread.
Bottom Line
While I’ve really just scratched the surface on productization here, agencies considering it must carefully balance scalability and customization.
Successful productized offerings should deliver clear value while remaining flexible enough to feel tailored to individual client needs.
(It’s just that easy!) :)
If agencies choose to explore this path, educating marketers on the benefits—such as faster delivery, cost predictability, and proven effectiveness—will be essential for driving adoption.
By aligning productized services more closely with marketer expectations, agencies can better position themselves for success.
We shall see.