Advertising's evolving landscape is driven by tech disruption, founder egos, and changing media dynamics. Can agencies adapt or risk obsolescence in a world where influence and reach redefine success? Harshad Sharma writes… 

The advertising industry is undergoing a seismic shift driven by technology, changing consumer behaviour, and an explosion of media platforms. Traditional advertising agencies face tough competition from tech-savvy creators leveraging social media, AI-powered tools, and precise targeting. As influencer-driven marketing and startup culture reshape branding strategies, agencies must adapt or risk becoming obsolete. This article explores how economic shifts, founder ambitions, and tech innovation are rewriting advertising's rules, forcing professionals to rethink survival in an ever-evolving digital ecosystem. Discover how these changes impact businesses, creators, and the future of marketing.

As most people you meet in advertising and related businesses will tell you, the fun has gone out of the game. And worship outside of work. Let's spend a few minutes trying to figure out why.

The Economy Factor

"It's the economy, stupid," said James Carville in 1992. Carville was a strategist in Bill Clinton's U.S. presidential election against incumbent George H.W. Bush. (Though, I wouldn’t boast about it if I were him.) In the past, advertising budgets have always risen and fallen with the economy. Not anymore. The reasons are many. VC money has start-ups chasing top-line growth to increase valuation. Profits be damned.

Then there’s the founder ego. In my youth, businessmen wanted to make money. Now they want to give autographs. Which is okay — even great strategy at times. Bill Gates, Steve Jobs, and others started it. Elon Musk has taken it to a whole different level by becoming a de-facto president of the US. As long as it makes money in the long term, there’s nothing wrong with fame. Go for it.

Finally, there are 50 times more media options today. A platform like Meta can offer immense ROAS if you play the game well, even on minuscule budgets. Internet penetration has enveloped half the country, allowing you to target reasonably incisively. The equation is internet penetration = content penetration = consumer reach. That graph is only going up.

Tech Is Changing the Game

“Technology will take away your job,” says everyone today. In fact, technology already took away many jobs 15 years ago — from cut-and-paste artists to darkroom operators to typesetting and processing houses.

This time around, though, the articulate are scared — hence the noise. Technology will take away your job but give it to someone with an iPhone 16 and a basic editing setup in Alwar, where they’ve teamed up with a young influencer with half a million followers. Together, they’ll post 20-minute videos of local businesses, plus shorts. They’ll showcase products, target precisely, and pander to the founder's ego.

Your agency can’t beat them at this game. So, here’s your chance: move back to your hometown and be a big fish in a small pond, or stay in Mumbai and start your own YouTube channel with a few freemium AI tools. You won’t have to retire at 58. Of course, this isn’t good news for traditional, inflexible agencies. Elvis is leaving the building, and Elvish Yadav is entering. If you don’t know who he is, come out from under that rock and check his Instagram account.

The Real Advertising Dilemma: B2B2C2P

Now that’s the real advertising dilemma. Let me start with something I’ve been saying for 20 years: “It takes two brave men to create a great brand — one on the agency side and one on the client’s.” Which is one more than it takes to create a country — which is why there are more countries than great brands.

Advertising starts as a B2B business: you get the client, decode the brief, and create advertising. You sell it to the client, bridging the gap between what you think great advertising is and what your client does. Then you hope and pray the consumer loves it.

But wait, that’s not enough — suddenly, your peers pop up and judge your work, in pretentious bars and even more pretentious award shows. If they don’t score it well, you don’t get that next job you really wanted. If you’re an agency head, you won’t attract enough good talent to grow.

So, your work has to succeed for businesses, consumers, and your peers. That’s a very, very tall task.

Maybe you should give that shift to Alwar a second thought.