Independent media agencies are redefining how they scale and compete as artificial intelligence reshapes the industry’s economics, according to a new report from XPON and the Independent Media Agencies of New Zealand.
The report, Indie Advantage, found agency leaders are moving away from traditional growth metrics such as headcount and billings, instead prioritising profitability per employee, repeatable intellectual property and human-led strategy.
From scale to efficiency
Rather than growing teams, agencies are increasingly focused on delivering greater impact with fewer people, leveraging AI to enhance productivity and output.
One agency leader noted that the goal is no longer to scale headcount, but to improve revenue and efficiency per person, signalling a fundamental shift in how success is measured.
The report suggests AI is enabling smaller agencies to compete more effectively, allowing a 20-person team to deliver the output of a much larger business.
A competitive edge for indies
Independent agencies are seen as having structural advantages in the AI era, including agility, fewer layers of decision-making, and the flexibility to adopt new tools quickly.
“We’re not tied to using one software or provider… that allows us to be a lot more nimble compared to holdcos,” one agency leader said.
Simon Teagle, Chief Executive Officer at IMANZ, said the report highlights the sector’s openness to confronting industry change.
“This report is more than a summary; it is a window into candid exchange and an invitation to join the conversation,” Teagle said.
Shift to value-based pricing
The report also points to a broader move away from time-based billing toward value-based pricing models.
Chris Rozic
Chris Rozic, Chief Growth Officer at XPON, said AI is accelerating this transition.
“The real shift is from clients remunerating you for time spent to remunerating you for value created. If you’re still selling hours, it’s a race you can’t win,” Rozic said.
Pressure on the wider market
While focused on independents, the findings highlight broader structural pressures across the agency landscape.
Procurement teams are already exploring new metrics such as “Human Time Equivalent” to benchmark efficiency in AI-driven workflows, impacting both independent agencies and holding company networks.
The report also warns that over-reliance on automation could create a quality gap, with agencies at risk of commoditising their output if human expertise is not maintained.
Growth in the indie sector
In Australia, independent agencies accounted for 64% of pitch wins in 2025, up 17% year-on-year, with 70% of indies planning to hire in 2026 despite broader industry job cuts.
This reflects a shift toward smaller, more efficient teams delivering higher-value work rather than scaling solely by headcount.
The report also highlights ongoing challenges around measurement, particularly as privacy changes and AI-driven search reshape the data landscape.
Rather than chasing perfect attribution, agencies are increasingly focusing on combining multiple data sources and prioritising business outcomes over precision metrics.
What it means for the industry
The findings suggest the future agency model will be defined less by size and more by efficiency, adaptability and strategic value.
As AI becomes embedded in workflows, the competitive advantage will shift toward agencies that can balance automation with human insight and deliver measurable impact at scale.
Main image: XPON