As industries continue to evolve through 2025, marketing is undergoing a transformation driven by shifts in geography, creativity, technology, and talent. These changes are redefining how businesses operate, paving the way for an era of growth and disruption.
As noted in the last edition of the Bite-sized Bottom Line, MENA has emerged as a hotspot for agency growth with resulting M&A activity in the region now being stronger, contrasting the comparative cooling trends in the U.S. and European markets. According to EY’s latest report, MENA recorded a 3% increase in deals, with 701 transactions in 2024 compared to 679 in 2023 press release.
The growth of agencies working with both the GCC governments and the in region commercial brands has led to a series of M&A deals being completed. The countries in the region have created a business-friendly regulatory environment with encouragements around economic diversification in countries like the UAE and Saudi Arabia. Governments have also introduced policies such as tax incentives and streamlined business licensing processes to attract foreign investors, creating an environment that encourages international partnerships. The recent example of Stagwell’s acquisition of Create Group, a Dubai-based strategic digital communications firm is a case in point press release. Further supporting this trend, LSEG data reveals inbound deals involving non-MENA acquirers increased 49% in value, in 2024, reaching a three-year high of $14.2 billion, a clear sign of the region’s growing appeal press release.
Similarly, technology, in particular AI, is also having a direct influence, shaping the future of marketing services through operating model efficiency enhancements. However, whilst AI can streamline processes, human involvement remains essential for generating the best ideas. A recent article from the ‘New York Post’ highlighted companies like ‘Staircase Studios AI’, who use AI for visuals but remain reliant on humans to create impactful tangible content. This kind of partnership enables AI to handle repetitive work, allowing creatives to focus on what they do best: challenging the status quo.
Beyond content creation, agencies are using AI to move away from traditional billing models and adopt value-based pricing, focusing on the measurable impact and effectiveness of campaigns. Not only does this align better with client goals, but it also helps agencies improve profitability and long-term sustainability press release. However, achieving these benefits depends on the quality of data that AI relies on. Bad data leads to bad decisions, and the consequences can be costly. According to Gartner, poor data quality costs businesses on average, $12.9 million per year, a clear reminder that strong data management is essential for maximising AI’s potential press release.
Alongside technological advancements like AI, creative businesses are also adapting to transforming work environments, especially with the ongoing debate over remote, hybrid, and in-office setups. Whilst many agencies embraced remote work during the pandemic, companies like WPP have recently pushed for a return to the office. But not everyone is on board. Much of the workforce prefers the flexibility of working remotely or in a hybrid setting. A ‘Marketing Week’ survey found that over half of marketers prioritise flexible working, with 24% feeling pressured to return to the office, despite the negative effect on their work-life balance press release. Meanwhile, agencies that remain remote or hybrid, as noted by TPM, are experiencing benefits like higher productivity and access to a broader talent pool press release.
Assessing the factors driving change for agencies, the landscape presents both opportunities and challenges, and success requires more than adopting tools; it demands a proactive mindset, continuous learning, experimentation and adaptability.
