SME Agencies in 2025 – The Gloves Are Off for New Business

read

by jim-piper

As agency specialists working across multiple disciplines and sectors, we have a good sense of the marketing, communications and creative commercial landscape. In 2025, the rules have changed for new business and for small to medium-sized marketing agencies, the gloves are officially off.

New business can’t be a passive pursuit waiting for the phone to ring with the next referral. It’s a battleground where agility, creativity and tenacity matter more now than headcount. As the second half of the year unfolds, the hunger for fresh, results-driven ideas is peaking—and the opportunity exists for independents to punch above their weight.

• Budgets are being tightened and clients want more for less, but for the SME space, those budgets could be game changers. They may not sustain a high overhead, networked company, but they could provide a real platform for growth for smaller, more agile agencies. We have identified a range of opportunities for clients with prospects looking to get more for their investment and build a proper, personal relationship with an agency.

• Smaller agencies are embracing AI for Enhanced Creativity and Efficiency. Whilst AI was and probably is still perceived as a threat to traditional agency roles, many agencies are now leveraging it to augment their creative processes. We have worked with a range of clients in 2025 who have integrated AI with human creativity and strategic thinking. This integration allows agencies to offer more value to their clients.

• Sustainability and ethical considerations are now central to consumer decision-making. Agencies that can help brands articulate and promote their sustainability initiatives are in high demand. This shift allows agencies to play a pivotal role in crafting purpose-driven narratives that resonate with socially conscious consumers or like-minded businesses.

• Strategy – typically smaller agencies are founded on a wealth of experience and are often made up of very senior, experienced talent. Providing strategic insights and planning is part and parcel of the process and a huge added value. This ensures marketing activities are aligned with what the client is wanting to achieve. In smaller agencies, the same people who craft the strategy are usually the ones speaking with clients regularly.

• Service – almost certainly, the level of client service and attention from an independent would be incomparable to a networked agency. Being the team that actually cares is a competitive advantage again. In a world where anyone can generate visuals or slogans with AI, what clients crave is clarity and confidence. They need direction, not just decoration. Smart agencies are:

o Leading with strategy, not just mood boards
o Bringing sector-specific insights to the table
o Positioning themselves as thought partners, not just execution shops

Why now is the right time to strike a blow:

Summer is critical – as with any year, the summer offers unique advantages for marketing and creative agencies looking to win new business. Here’s why this season could be particularly fruitful:

• Budget activations – we have seen a major shift since Easter with marketeers rolling up their sleeves and progressing with previously shelved or delayed plans. Post a period of stagnation and uncertainly there always tends to be a point at which decision makers need to do something!

• Strategic mid-year reviews – companies may review, finalise or adjust their budgets mid-year. This should open opportunities for challenger agencies, and you need to be front of mind for those projects that suddenly get the go ahead and require agency support.

• Time – decision-makers often have more bandwidth to:
o Take meetings
o Review proposals
o Explore potential new agency partnerships – we often have a tactical push for our clients in the summer months to revisit prospects they have met in the earlier part of the year.

• Christmas in July!! – agency evaluations may well start in Q3 and Q4 – these decision makers are getting targeted all the time from agencies, so the summer is a great time to start conversations early, build relationships and ensure that your agency is part of that review process. Plant the seeds in summer and don’t miss the bus.

• Use the summer to:

o Pitch “starter” projects (e.g. audits, creative refreshes)
o Offer free strategy sessions to get your foot in the door

The rest of 2025 won’t be won on politeness. It will be won by:

• Agencies willing to swing first and proactively reach out to the right prospects in the right companies
• Founders who pick up the phone, not just send emails
• Creators who dare to pitch something the client didn’t ask for – but may well need
• Building relationships early and often working with prospects to help formulate the right brief to hit the objectives

If you’re running a small or mid-sized agency, you don’t need to wait for permission anymore. The gloves are off and there’s an appetite for smaller, more agile and cost-effective agencies with best-in-class service.

In summary, the evolving landscape of 2025 offers creative and marketing agencies numerous avenues for new business and growth. By embracing technological advancements, focusing on authenticity, and aligning with consumer values, agencies can not only navigate the current challenges but thrive.