AdFed partners with organizations that bring valuable expertise to Minnesota’s marketing, advertising and communications community, and we’re pleased to share their insights with our members. In this guest article, Kevin Besikof, Partner at EisnerAmper and former AdFed board member, explores practical ways agencies can improve profitability in today’s challenging business environment without simply passing higher costs on to clients.
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So far, 2026 has been a year of disruption for both large and boutique agencies. Large agencies are laying off professionals in the hope that AI will create cost savings and efficiencies. Small agencies are getting squeezed on fees by clients, and work is being put up for RFP to the lowest bidder. “There’s a reason Don Draper’s words still resonate in agency culture: success comes from standing out, not fitting in,” says Kevin Besikof, Partner and former board member of AdFed. “In an industry where everyone is racing to undercut on price or digitalize all operations, the agencies winning on profitability are the ones brave enough to do the opposite.”
This article will examine three questions agencies should consider when adapting to current and emerging industry changes.
Three Questions to Stay Ahead of the Changing Agency Landscape
Do I have underutilized personnel costs?
One of the highest costs in most agencies is human capital. Agency owners and executives need to understand labor cost trends, determine staffing needs, and proactively reduce costs where applicable. To review human capital, agencies should:
- Utilize time sheets to determine productivity and efficiency
- Prepare an analysis of the percentage of labor costs to revenues for the past few years
Are we paying for unnecessary software or subscriptions?
Agencies should review subscription and software costs at least annually. As software companies transition to a SaaS model, automatic subscription payments have skyrocketed at agencies. This could result in paying for software your agency no longer uses or purchased for a one-time project. When evaluating monthly payments, ask yourself these questions:
- Do we have more seat licenses than required with our current staffing levels?
- Are we paying for licenses for former employees and contractors?
- Do you have other large categories of expenses to cut? This may include phone lines, unused internet capacity, and rent.
Performing a quick review of credit card charges can produce meaningful increases in profitability.
Are we forming intentional connections?
Agencies can stand out in this fast-paced, hyper-connected environment by fostering human connection. Based on current trends, digital communication will continue to grow, but that does not negate the impact that personalization and human communication can have. Now more than ever, people want human connection, meaningful interactions, and thoughtful collaboration. Whether it’s hosting a client happy hour, sending a birthday card, or sharing a relevant article, showing you care through actions will remain a driving force in wining and retaining client relationships.
The EisnerAmper Difference
EisnerAmper is rooted in four core principles: responsive, accountable, principled, and relationship-oriented. Our team understands the importance of maintaining profitability without losing sight of what matters most: delivering exceptional client advisory, assurance, tax, and outsourcing services across industries. Our team helps guide organizations toward success without compromising productivity or organizational goals. To learn more about how EisnerAmper can help your agency navigate this period of transition, contact us.
Questions? Contact Kevin Besikof, Partner, Eisner Advisory Group LLC
