#47: Fixing agency productivity in the age of AI, with Michael Farmer

Welcome to Agency Business. This week, Olivia and Brian sit down with consultant and author Michael Farmer, who has spent three decades diagnosing the economic pressures inside agencies. Farmer explains why agencies still struggle to measure work, how rework distorts staffing needs, and how digital and social accelerated the long-running pattern of falling fees and rising workloads. He also outlines what AI will mean for both creative and media agencies, including major productivity gains that could compress fees unless leaders reinvest efficiencies into senior talent and reconnect creativity, media and brand strategy.Michael shares insights from his early consulting work at Ogilvy, his analysis of media agency staffing models and his belief that MMM tools like Mutinex can help clients and agencies better understand where growth is actually coming from. He closes with what is ahead for him as he completes his new book Madison Avenue Media Madness and shifts his focus toward teaching and training.In News of the Week:IPG, Dentsu, and Globant report financial results.Publicis publicly challenges Omnicom’s accounting approach.Paramount Skydance discloses that Publicis and Interpublic won its business with media sales agreements.The episode also features a brief mention of Olivia's new subscription PR model offering agencies a weekly hour of senior strategic thinking. For details, email [email protected] to the Agency Business newsletter for episode notes and analysis. It’s free and drops every Monday.Reach OutAgency Business features agency CEOs and financial decision-makers alongside third party experts including agency pitch consultants. We are always accepting pitches, and are particularly interested in hearing from women and leaders of color.📬 Pitch a guest or inquire about sponsorships:📩 Brian at [email protected]📩 Olivia at [email protected] Madison and Wall and FusionFront Media on LinkedIn for updates.Explore Our Other Podcasts:📊 The Madison and Wall Podcast – Brian opens up about his latest work — plus crucial economic, financial, and industry trends.🎬 Screen & Sponsor – Olivia & VaynerMedia's Jessie Holder explore how brands are shaping Hollywood.