The Agency Business Development Playbook: Navigating a Competitive and Cost-Sensitive Market

The Agency Business Development Playbook: Navigating a Competitive and Cost-Sensitive Market 

Time to wrap up my series around our latest RSW/US report. 

Marketers continue to be selective in their spending (not a new thing), agency search methods are evolving, and the traditional RFP process is (potentially?) losing traction.  

In response, in previous posts I’ve postulated agencies need to refine their positioning, make a more distinct effort against direct outreach, and prove their value beyond in-house teams, to name a few tactics. 

This agency business development playbook outlines actionable strategies agencies can use to thrive in a cost-conscious market and drive new business in 2025. 

More Money, More Scrutiny: How Marketers Are Spending (and Holding Back) in 2025 

In the U.S., advertising spending is expected to expand by 4.5% in 2025, but the growth is uneven across media platforms.  

Digital advertising continues to grow, with projections indicating a 9.1% increase, driven by investments in connected TV, social media, and retail media networks.  

Conversely, traditional media platforms such as television, radio, and print are witnessing declines, with anticipated reductions of 7.6%, according to S&P Global, due to shrinking audiences and the absence of major events like political campaigns and the Olympics. 

And per Ad Monsters, marketers are also adapting to changing consumer behaviors influenced by economic pressures. Interestingly,  

Approximately 9 in 10 Americans express concern over the rising cost of living, leading to more deliberate purchasing decisions.  

And from the same piece, 44% of Americans feel overlooked by advertisers, while 67% are frustrated by irrelevant targeted ads following them across platforms. 

Yikes.  

So, this heightened consumer scrutiny means brands brands have to demonstrate clear value propositions and ROI in their offerings. 

Bottom Line: 

There looks to be an overall increase in ad spending, with marketers adopting a more strategic and selective approach, focusing on channels and strategies that offer the most efficient and effective engagement with their target audiences. 

And that’s good news for agencies, IF, you take steps to embrace these potential opportunities. 

The Agency Business Development Playbook: In 6 Parts 

1. Refine Your Agency’s Positioning in a Budget-Conscious Market

Marketers Are Spending Selectively—Make Your Agency Essential 

With 75% of marketers expecting growth in 2025, the optimism is there, but budget constraints mean they are more discerning. Agencies must position themselves as indispensable by: 

• Showcasing expertise in high-value, specialized services rather than trying to be everything to everyone. 

• Crafting a compelling value proposition that addresses specific pain points marketers face. 

• Emphasizing efficiency, ROI, and agility in messaging. 

A few ways small and mid-sized agencies are doing this now: 

-Allocating more of their budgets to digital strategies, with SEO investments ranging from $5,000 to $10,000 per month.  

-Increasing their content marketing chops, as companies shift towards creating tailored, strategic content to drive brand engagement.  

Investing in AI-driven solutions and performance marketing tools are seeing higher client retention and business growth, even in a budget-conscious environment. 

🔥Playbook Tip: Make sure your agency’s site and sales materials clearly communicate how you solve marketers’/your prospects’ business challenges—not just a list of services. 

2. Mastering Agency Discovery: Direct Outreach & Multi-Channel Visibility

How Agencies Get Found in 2025 

Our report shows that marketers discover agencies through multiple channels: 

• 59% via referrals (friends/co-workers) 

• 56% via networking 

• 52% via direct agency outreach 

• 33% through conferences 

While referrals remain king, direct outreach is just as critical.  

To stand out, agencies should: 

• Personalize outreach with value-driven messaging tailored to that prospect’s vertical. 

• Optimize websites for SEO and leverage thought leadership (blogging, speaking engagements, LinkedIn). 

• Use video and short-form content to capture attention quickly—studies show people switch screens every 47 seconds. 

🔥Playbook Tip: Avoid generic email blasts (for many reasons.)  

Instead, focus on hyper-targeted, value-first outreach that shows you understand the prospect’s business. 

3. Attention Economy Realities

Adapting Messaging for Ultra-Brief Attention Spans 

Speaking of that 47 second stat above, capturing and holding attention has become one of the biggest challenges for agencies.  

Short-form video platforms are dominating content consumption, with 44% of users engaging with YouTube Shorts and 41% with Instagram Reels . 

To remain competitive in this fragmented attention economy hellscape (just kidding, it’s barely a hellscape), agencies need to: 

• Craft succinct, high-impact messaging that conveys value quickly. 

• Prioritize visual storytelling through short-form content that engages immediately. 

• Experiment with interactive formats, such as polls and live Q&A, to sustain engagement. 

• Optimize ad creative for mobile-first experiences, ensuring content is digestible within seconds. 

🔥Playbook Tip: Agencies that refine their storytelling for rapid consumption—without losing depth—will outperform competitors in 2025. 

4, Breaking Through the In-House Plateau

Marketers Continue To Keep Certain Types of Work In-House—How Do Agencies Compete? 

Per our report, 54% of marketers hand over half of their work to an internal team.  

However, the opportunities lie in areas where agencies bring unique expertise, including: 

• Complex, high-impact creative work 

• Data-driven marketing strategies that go beyond in-house capabilities 

• AI-powered personalization (cited as the top trend for 2025 by 73% of agencies) 

Many small and mid-sized agencies are differentiating themselves by investing in AI-driven analytics and performance measurement tools to provide insights that in-house teams may lack.  

By focusing on efficiency and specialization, these agencies position themselves as essential partners rather than competitors to in-house teams. 

To break through, agencies must clearly articulate their differentiation and demonstrate how their capabilities complement internal teams rather than compete with them. 

🔥Playbook Tip: Case studies showcasing success in collaborating with in-house teams can be a powerful proof point in agency pitches. 

5. Winning in the RFP Game—Or, Ideally, Avoiding It Altogether

Agencies Are Getting More Selective About RFPs 

Our report reveals a subtle, but continuing shift: 10% of agencies opted out of RFPs entirely in 2024, and those that did participate were highly selective.  

Instead of chasing RFPs, agencies should: 

• Evaluate RFP opportunities strategically to focus on those with the highest win potential. 

• Invest in relationship-building and direct outreach to bypass the traditional RFP process. 

• Develop strong referral networks, as marketers are increasingly relying on trusted industry connections. 

🔥Playbook Tip: If your agency still participates in RFPs (and why are you?), ensure that they’re tailored and emphasize specific results rather than just capabilities. 

 6. Preparing for the Future: AI, Personalization & Agency Innovation

Marketers Are Losing Confidence in Agencies’ Ability to Stay Ahead 

Only 62% of marketers believe their agencies are ahead of the curve when it comes to trends and technology—down from previous years.  

In order to combat this, Agencies can prove their value by proactively educating clients on emerging technologies and/or trends before they ask. 

Per S&P Global, small and mid-sized agencies are investing in AI tools to enhance efficiency and remain competitive, for example.  

For all the talk about AI, how it can effectively enhance personalization, streamline workflows, and prove value to clients looking for cost-efficient yet effective solutions, remains to be seen in 2025 

🔥Playbook Tip: IF you do experiment with AI, in biz dev, or client work (and you should), show how AI enhances efficiency, not replaces creativity, and you’ll have an edge over competitors. 

Agency Growth in 2025 

The 2025 agency business landscape is ever-evolving: in-housing has stabilized, marketers are scrutinizing agency value more than ever, and direct outreach is now as important as referrals.  

The agencies that win in 2025 will be those that adapt, prove their worth beyond internal teams, and innovate in AI and technology. 

By refining positioning, enhancing outreach, and investing in the right growth areas, agencies can navigate these shifts successfully and emerge as essential strategic partners for marketers.