Three Challenges That Will Shape the Future of Communications Agencies

Our Director, Marina Čulić Fischer, wrote for Lider magazine about the key challenges communications agencies will face in the coming years. Here, we share the full article.

According to a recent qualitative study by PRWeek, based on interviews with leaders from the ten largest UK communications agencies, the industry’s most urgent need is structural reform. While the Croatian market is quite different from the UK, some parallels can be drawn and historically, trends from more developed markets tend to reach us quickly.

Big players are integrating, smaller ones are teaming up

Reform can mean many things depending on your starting point. In Croatia, the early 2000s saw a boom in communications groups made up of multiple specialized agencies. Today, these models face their biggest challenge yet: reintegrating services in response to slowing organic growth.

Global communications networks began this process more than a decade ago and they’re not stopping. Just this year, Burson UK reduced its specialized units from six to four, and Edelman integrated its niche and sister agencies into a broader organization. We’re seeing similar developments in our region, though with some exceptions.

On the flip side, independent agencies are increasingly seeking partnerships to improve their position in delivering integrated communications solutions, as the lines between specializations continue to blur.

Custom generative solutions

These lines are being blurred by media, by consumers but most of all, by advertisers. The integration of marketing, communications consulting, and public affairs demands new ways of working and expanded internal capabilities. At Dialog, we adopted an integrated model even before the pandemic, but the challenge of building capacity remains ever-present.

One promising solution is the development of custom GPT tools. Our global partner, Ketchum, recently launched OmniAI, a powerful tool for delivering high-level services like strategy development. In this context, artificial intelligence offers a significant opportunity to optimize processes. The real challenge? Staying ahead of the competition.

In conclusion, the three biggest challenges agencies face are: building new capabilities and skill sets, adapting quickly to AI tools, and remaining resilient amid political and economic turbulence. These three areas will determine who stays relevant in the communications industry in the years ahead.