To capitalise as AI reinvents the industry, agencies must reject generic rhetoric and embrace deeper differentiation.

By Robin Bonn, CEO of agency positioning specialists, Co:definery, and author of “Market of One” and hosts The Immortal Life of Agencies podcast

You’ll remember the famous scene in Monty Python’s Life of Brian where a crowd gathers for Brian’s sermon, chanting in unison: “We’re all individuals!”

I’m reminded of this every time agency leaders claim ‘creativity’ as their USP. Time after time, it gets framed as ‘what sets us apart’, our ‘special sauce’ and, most puzzlingly, ‘the industry’s differentiator’.

Although creativity is our industry’s collective heart and soul, clearly it can’t be everyone’s point of difference. Unfortunately, when it comes to describing what they do, agencies have a bad habit of tying themselves in knots.

If you’ve ever wasted hours debating whether to say that you’re ‘award-winning’ or ‘strategic’, then you know exactly what I mean.

And now AI has served up a fresh flavour of word soup. Does it really matter whether you’re ‘AI-powered’, ‘built for the AI era’ or an ‘AI-driven organisation fuelled by human ingenuity’?

Recognise the stakes

Now, of course your AI chops are an important differentiator (at least for now), but as per your creative skills, just saying so won’t help you stand out. As the old saying goes – don’t tell me you’re a comedian, just make me laugh.

And let’s be clear, ‘standout’ isn’t just a nice-to-have – trading on category generics makes you a commodity. Once you’re indistinguishable other than by price, you’re in a race to the bottom – and there are no awards for winning that one.

Happily, this isn’t just about avoiding commercial oblivion. AI-led disruption is already extending beyond efficiency into almost unimaginable change – from search habits to personalisation throughout the customer experience. Emerging client needs offer agencies an unprecedented growth opportunity.

Realising the AI opportunity

Being well-placed to capitalise as AI matures should be priority number one for every agency leader. But you need to take a position on how things will play out.

Client requirements are already forming two distinct tiers – shed-loads of cheap, automated ‘good enough’ content, alongside a lower volume of high-end, human-created work that can and should command premium pricing.

Your agency can thrive in either or both of these markets, but not if you’re stuck in the middle – too expensive to compete with automation, too indistinct to justify decent fees.

As the disruption increases, the stakes will rise for clients. Existing corporate risk aversion will only grow. So unless you offer a clear solution and specific reasons to choose you, you’ll keep losing out to agencies that do.

Needless to say, ‘we’re different – we’re creative’ won’t cut the mustard.

Reframe the problem

So, where should you start? I’ll let you into a secret. Many of your competitors believe that in a crowded market, all this stuff about straplines, positionings and propositions doesn’t actually make that much difference.

Instead they claim ‘our people are our differentiator’ – implicitly (and ironically) outing themselves as disbelievers in the power of brand. And by the way, if you’ve ever shrugged and exclaimed “cobblers’ children!”, then I’m talking to you too.

The idea that standout isn’t viable in an oversupplied market is as dangerous as it is pervasive. In fact, the agency market isn’t oversupplied, it’s just under-differentiated. Believing the former locks you into victimhood, inviting cost-conscious clients to dictate their terms. But embracing the latter empowers you to lead the way.

Just look at Liquid Death. Remember, it’s just water – literally the same as dozens of competitors – but recently valued at $1.4bn. As their VP of Creative Andy Pearson once said: “When everyone else says the same thing, that’s the best possible brief to create a category of one.”

Get clear on where you win

Agencies’ safety-in-numbers buzzword bingo is dangerous. Fearfully hoping to appeal to everyone is no longer just an unhelpful habit, it’s become an existential threat. As AI polarises demand, defaulting to this non-strategy is the road to ruin.

No wonder progressive agencies are applying their creative superpowers to their own business model. As well as decoupling pricing from time spent, they’re swapping superficial slogans for ownable points of difference that appeal to discrete target audiences.

Once you define the problems you solve and for whom, your people can show-up as focused experts not hopeful generalists. You move from indistinguishable to indispensable. That competitive advantage enables you to stand out, win more and charge what you’re worth.

Step one is to reject the herd mentality and decide where you excel. As Graham Chapman’s Brian of Nazareth rightly said, “You’ve all got to work it out for yourselves.”

About the Author

Robin Bonn is the CEO of agency positioning specialists, Co:definery. He’s also the author of Market of One and hosts The Immortal Life of Agencies podcast.