Agency Performance Pulse: Independent Agencies Balancing Optimism and AI Acceleration

The latest Agency Performance Pulse (APP), supported by BAND and Synergist in partnership with The Alliance of Independent Agencies, has once again provided a valuable temperature check on the independent agency sector.

Tracking the views of agency owners and leaders across the first half of 2025, the latest APP follows on from January’s findings to provide a mid-year perspective on financial performance, growth ambitions, talent management, and evolving client dynamics.

A Market in Motion

The first half of the year has seen agencies continue to navigate an environment of cautious growth. Financial performance has remained steady, with many owners reporting modest revenue increases but tighter margins, a reflection of ongoing client pressure on pricing and delivery speed.

Against this backdrop, agency leaders remain largely optimistic about the second half of the year. The majority expect client spending to improve through Q4, driven by a rebound in consumer confidence and new opportunities in content, retail activation, and brand experience.

AI: From Curiosity to Core Capability

Unsurprisingly, the topic dominating agency discussions is AI, specifically its practical application in driving productivity and operational efficiency. The Performance Pulse revealed that most independent agencies are actively experimenting with AI to streamline workflow automation, creative development, and reporting. However, the challenge remains in balancing speed and cost efficiencies with maintaining creativity, originality, and human insight.

The consensus among respondents was clear: those who can integrate AI strategically, not just tactically, will unlock significant competitive advantage in the months ahead.

The People Equation

Talent retention and resourcing continue to rank among the top challenges for agency leaders. While flexible working remains the norm, many respondents noted the renewed importance of team cohesion, leadership visibility, and culture as differentiators in attracting and keeping talent.

At the event held at Google London, St Pancras, these themes were explored in depth by moderator Jay Neale of Agency Works, alongside a panel of agency and client-side leaders. Discussion centred around what top-performing agencies are doing differently — not only in commercial and financial performance, but in aligning people, processes, and technology to deliver sustainable growth.

Performance Beyond the Numbers

Ultimately, the Pulse reinforced a key message: the best-performing agencies are those treating performance as multidimensional. Financial management remains critical, but it’s increasingly interlinked with operational efficiency, team wellbeing, and the ability to harness technology intelligently.

As the second half of 2025 unfolds, the independent agency sector continues to show the resilience, creativity and ambition that define it — with BAND proud to support the ongoing dialogue that helps shape its success.

Commenting in the report for BAND, Head of Creative Industries, Rob Quinn said “The Agency Performance Pulse is a valuable tool for agency owners to benchmark the performance of their business. We continue to experience a challenging trading environment for agencies across the industry and at BAND, we’re delighted to work alongside both Synergist and The Alliance in the creation of this report twice a year”.

To access the report please click here.