The traditional agency-client relationship is being pulled in two directions: On one side, the “holding company shakeups” are forcing consolidation and headcount reductions; on the other, the rise of “agentic AI” is redefining what value even looks like.
For marketers, this isn’t just about whether your agency is doing a “good job” – it’s about whether they are still the right shape for your business. But perhaps before you default to a gruelling RFP, you should ask if your relationship needs a Transformation rather than a Replacement.
Huh?
Well, hear us out. Because there are some questions you could ask that may reveal exactly where you want to take your agency relationship (or not):
The “State of the Union” Questions
Start by looking at the foundation and ask some questions that might help determine if the cracks you’ve noticed are surface-level or structural.
- Is our current model based on “Headcount” or “Outcome”? In an AI-driven market, paying for hours is a legacy trap. If your agency is still resisting performance-based pricing or hasn’t shown how they are using automation to reduce your costs, it could be a profit-maximizing strategy – at your expense(!)
- Do we still have “Institutional Memory,” or has the “Great Shakeup” erased it? With Forrester predicting a 15% cut in agency jobs this year, many marketers are finding their “A-Team” has been replaced by rotating juniors. If the people who knew your brand’s “why” are gone, you may have already lost the primary benefit of your incumbent.
- Are we a “Top-Tier” priority? It’s a tough question. But the truth of it is, that in Canada, if you’re not a US or globally aligned business with a sizeable budget, and your agency is part of a holding company undergoing significant restructuring, it may be they’re more focused on their own internal worries than your creative or strategic breakthroughs. (Did I say that out loud…? Well, sort of. I’m just encouraging you to ask yourselves the question and come to your own conclusions.)
The AI & Tech Litmus Test
AI is no longer a “roadmap item”. It’s the operating system of 2026.
- Does the agency have “Agentic Guardrails” in our contract? You shouldn’t just ask if your agency just uses AI. To one degree or another – of course they do. So ask how they govern it. Do you have clear agreements on data privacy, ethical red lines, and human-in-the-loop, leadership oversight? If they can’t show you their AI governance framework, you are carrying the brand risk.
- Are they collapsing the “Decision Drag”? Modern marketing moves at the speed of software. If it still takes your agency two weeks to iterate on a campaign that an AI-native shop could optimize in two hours, your “incumbent” is actually an anchor.
Transformation vs. Search: Which Path to Take?
Once you’ve answered the questions above, you’ll likely find yourself at a fork in the road. Here’s a decision map:
| The Case for Transformation | The Case for an Agency Search |
| Shared Ambition: The agency is eager to co-create a new SOW that reflects modern tech and pricing. | Cultural Stagnation: The agency is defensive about their legacy models and “the way we’ve always done it.” |
| High Strategic Value: They still provide “high-touch” human insights and “white-glove” strategy that AI can’t replicate. | Talent Brain Drain: The key leaders you trusted have departed, and the replacements lack category expertise. |
| Agile Willingness: They are willing to move from a rigid MSA to a “Product Roadmap” approach with flexible sprints. | Redundancy: You are paying for a massive overhead/bureaucracy that no longer serves your specialized needs. |
A Better Alternative: The “Request for Transformation” (RFT)
Before jumping into a full-blown RFP which – frankly – might take 3-6 months – consider the Request for Transformation (RFT) option. Instead of asking new agencies to pitch, ask your current partner to pitch why they should still be your valued, trusted and perhaps most sought after agency, by presenting a vividly different operating model. If they can’t envision a version of themselves that is faster, leaner, and more tech-integrated, then you have you’ll have your answer.
Either way. If you’re looking for an RFT – call us and we’ll show you how to get the wheels in motion. And if it turns out you need an RFP, we’ll make it is as painless as possible.
Stephan Argent
Stephan Argent is Founder and Principal at Listenmore Inc, Canada’s leading confidential advisory consultancy that specializes in Agency Search Management. Read more like this on our blog Marketing Unscrewed / follow me @StephanArgent