Ad Agencies Finally Do the Math on AI. The Numbers Are Not Flattering.
Marketing agencies are discovering that their AI spending exceeds demonstrable returns. The industry chased adoption without establishing clear metrics for value. Now firms are scrambling to calculate actual costs against outcomes they can verify.
This teaches the principle of cost-accounting before tool deployment. You must define measurable value before you scale any AI investment. Otherwise you are simply subsidizing vendor marketing budgets with your own.
Advertising agencies broadly, as reported by Digiday. The source does not name specific firms or cite dollar figures.
Step 1: List every AI tool your team uses and its monthly cost. Expected outcome: a clear spend inventory. Step 2: For each tool, write one specific task it completes and how you currently measure success. Expected outcome: accountability criteria. Step 3: After two weeks, score each tool 1-5 on whether it improved speed, quality, or revenue versus its cost. Expected outcome: data to justify keeping, replacing, or canceling.