Independent agencies rewrite the rules to stay relevant and take on industry Goliaths

Anyone watching ‘Mad Men’ can’t evade seeing the classic advertising agency structure—creative, production, client services, and finance, each with its own division head. Though this series was set in the 1960s, this hierarchy continued well into recent times.

In the pre-social media era, this storied model was best suited for handling a one-off job like designing a logo or planning a print campaign. But in today’s world of multi-service demands, it can feel like trying to run a relay race with runners stuck in their lanes.

Cross-collaboration gets tangled, creativity stalls and procurement has shifted the game. As clients expect a unified brand experience, agencies are finding that breaking down these silos might just be the secret sauce they need.

As the advertising world shifts, the traditional agency model, once the industry’s gold standard, is rapidly fading. Today’s marketing landscape is marked by an urgent demand for flexibility, data-driven strategies, and a full-spectrum approach. Independent agencies, unbound by legacy structures and fuelled by agility, are well-positioned to thrive in this changing environment.

Blurring boundaries in advertising

Gozoop’s chairman and co-founder Rohan Bhansali feels that the lines between traditional and digital agencies have virtually disappeared. Many large agencies once focused solely on 'mainline’ (or traditional) advertising, such as print and TV ads.

Rohan Bhansali, chairman and co-founder, Gozoop.

But today, most of these agencies also have strong digital capabilities, either through acquisitions or in-house teams. Meanwhile, digital agencies like Gozoop have extended their expertise to traditional areas, offering TVCs and brand strategy in addition to social media and digital campaigns.

“Ultimately, there won’t be a distinction between traditional and digital agencies; an agency today is expected to handle everything and act as a true brand custodian for the client,” Bhansali explained. With the entire spectrum of advertising channels now in play, the notion of a “traditional” agency is becoming obsolete.

For agencies like Wondrlab Network, the rapid evolution of marketing has transformed advertising into a future-focused discipline, pushing agencies to reimagine their entire operational model. Co-founder Rakesh Hinduja saw this as a sign of the industry’s readiness for change.

"The advertising environment today is vastly different from even a couple of years ago,” he said. To him, the most effective agencies are integrating cutting-edge tools and updated client remuneration models that range from retainer fees to profit-sharing.

Hinduja also highlighted the impact of AI and technology in shifting agency roles from tactical execution to broader brand strategies. He suggested that traditional setups are already on “borrowed time,” while the industry expands into new areas like AI, data analytics, and product innovation. “Forget being obsolete; there’s a huge opportunity to create a wonderful future here,” he enthused.

Independence breeds agility and creativity

One of the clearest advantages independent agencies enjoy is their ability to pivot quickly and adapt to changing demands. At Famous Innovations, CEO Mithila Saraf has used this flexibility to redefine what an agency can offer.

“Our expansion into verticals such as content production, loyalty programmes, talent management, and digital marketing is not just about diversification,” she explained. “It’s about creating a robust ecosystem that offers holistic solutions for our clients.”

Mithila Saraf, CEO, Famous Innovations.

Sowmya Iyer, founder and CEO of DViO echoed this sentiment, stressing that the agility of independent agencies allows them to offer genuinely integrated solutions. However, she warned that some agencies’ “tactical” solutions lack accountability, leading to what she describes as a “vicious cycle” where undercutting fees compromises quality.

“Every business, brand, or product needs marketing of some kind,” Iyer stated. “But to truly build businesses alongside clients, agencies must go beyond transactional relationships to provide a deep understanding of the industry.”

Building for the future

In an industry often subject to rapid change, agency leaders are keenly aware that future-proofing means more than survival—it’s about thriving. Many are adopting a consulting-style approach, with technology and AI at the forefront.

For DViO, the aim is to move beyond marketing advice to become consulting partners on every aspect of a client’s brand journey. “Combining a consulting mindset with AI solutions and accountability will future-proof them, and I doubt they should be called agencies in this avatar,” Iyer said.

Gozoop, too, is investing heavily in AI. Bhansali sees AI as both a tool and a challenge. “Agencies that don’t integrate AI into their operational ecosystem risk falling behind,” he said.

But building a future-proof agency goes beyond AI—it also requires solid financial management, client retention, and a stable revenue base. Because diversification is the key to survival and ultimately, success. “No single client should represent more than 10% of our revenue,” Bhansali advised.

This sentiment is shared by Famous Innovations, where Saraf emphasised a focus on client relationships and consistent quality. “We’re committed to creating a new category within the industry,” she said, “one that reflects the agility and creativity clients need without the constraints of traditional models.”

Long-term relationships drive success

To Wondrlab Network co-founder and managing partner, Rakesh Hinduja, client relationships are all about delivering value, not just fulfilling contracts. “Building long-term client relationships is about not taking anything for granted,” he said. Agencies must invest in relationships and stay actively engaged with clients’ needs. At Wondrlab, a strong internal culture focusing on people, products, and profit helps cement client loyalty.

Rakesh Hinduja, co-founder and managing partner, Wondrlab Network.

For Saraf, trust is built through deep understanding and strategic planning. “We go beyond superficial engagement by conducting workshops and interactive sessions, ensuring we capture clients’ aspirations and challenges,” she said. Regular feedback sessions also foster a collaborative relationship, allowing the agency to deliver campaigns that resonate with clients’ evolving goals.

Gozoop’s Bhansali, meanwhile, stresses the importance of involvement beyond advertising. By immersing themselves in clients’ broader business objectives, an integrated agency can become “more and more indispensable,” Bhansali says. For instance, long-standing partnerships with brands like Dell and Mad Over Donuts have enabled Gozoop to grow with these brands, consistently upselling different services and building trust.

Balancing creativity in a numbers-driven world

In today’s data-driven landscape, some fear that analytics might overshadow creativity, but these agency leaders don’t see it that way. Many view data as a compass rather than a constraint.

“Our job is to connect with people,” Saraf said. “Data points us in the right direction, but storytelling is still about people, not numbers.”

Hinduja is equally optimistic about data’s role in creativity. “Creativity getting lost in numbers is actually a myth,” he argues. When agencies start with strong data insights, it gives creative teams a base to develop impactful stories, enhancing the consumer journey.

Data can help identify specific consumer needs, as seen in a recent healthcare campaign DViO ran based on clinical data. It studied clinical data to identify key issues in a micro market and built a spot-on campaign around stress and sleep, which resulted in measurable increased footfalls for the brand. The company has also assigned data analysts to clients who read the latter’s data on an ongoing basis to identify patterns and feed the creative teams with insights.

Gozoop’s has even coined a motto, ‘Thoda data, thoda dil’, (Little data, little heart) to reflect this balance. This because while data is a useful tool, it is important to break the box to create new trends rather than simply following them. “Data is a reflection of the past, but creative intuition is a reflection of the present,” Bhansali explained.

Succession planning and sustaining a vision

Independent agencies often face unique challenges when their founders step back. Wondrlab’s Hinduja notes that founder-driven cultures can lead to instability if a transition isn’t carefully managed. He points to iconic founders like Leo Burnett and Bartle Bogle Hegarty, who built networks that lasted because they created scalable cultures and ecosystems.

Bhansali of Gozoop echoes this, emphasising the importance of a “people-driven” rather than “founder-driven” culture. Hence, the company has structured itself into three verticals, each with its own CEO and leadership pipeline, ensuring continuity. This approach minimises the risk of key departures disrupting the agency.

Sowmya Iyer, founder and CEO of DViO.

For Iyer, it all boils down to culture, because it can be the company’s biggest differentiator. DViO has a quarterly routine of revisiting and refining its cultural guidelines to keep it aligned with agency goals. The result is a resilient team that can uphold the company’s vision and adapt to new challenges.

As the traditional agency model loses its sheen, independent agencies are flexing their flexibility, innovation, and strong client relationships, which they believe are crucial for staying competitive.

By embracing new technologies, consulting mindsets, and agile structures, they are demonstrating that today’s clients demand more than just advertising; they need a partner ready to evolve with them. In a market that increasingly values results and accountability, the future belongs to those who adapt—size and heritage notwithstanding.