Indy agencies can take over the world but must act now

As the giants of the advertising and marketing world digest the Cannes Lions future-gazing, and get their heads around the awards cheating allegations, independent agencies are quietly making huge inroads into the holding group model, but they still need to tackle a number of issues to secure a permanent place at the top table, working with international brands.

That is according to a new report commissioned by SBS, the European programmatic curation platform supporting independent marketing and advertising agencies, which reveals that while the UK’s independent agency sector is thriving, its momentum is at risk – held back by legacy partnerships, operational drag, and tech growing pains.

The research shows 90% of UK indies are already collaborating with other agencies, signalling a major shift away from the traditional holding group model.

Yet barriers – both perceptual and practical – still persist, with 60% of indies saying coordination across different agency structures is a major challenge, and 39% citing legacy contracts with holding groups as a block to new partnerships.

Despite this, optimism runs high. Some 86% of independents expect growth over the next 12 months, but brand identity concerns (48%), lack of tech training (55%), and budget constraints are slowing progress at a time when advertisers are actively seeking more agile, specialist partners.

With 99% of UK agencies being independent and collectively generating more than three-quarters of industry turnover, the traditional ‘one-stop shop’ model is losing traction.

The report, entitled “Adapt to Thrive: How the Agency Model is Changing”, highlights how collaboration among independents is not just trending, it is delivering real results.

In fact, over half (52%) of indies report new business from partnerships; a similar proportion (51%) have expanded service capabilities; more than a third (36%) say they are performing better in pitches; and a quarter (24%) have gained access to new markets and global reach.

Even so, significant structural hurdles remain, nearly three-quarters (71%) say adopting new tech is a barrier to progress; over half (55%) say they lack of training or support for emerging tools; 45% don’t have the time to properly assess new tech; and nearly half cite budget as the main blocker to deeper integration.

The report paints a clear picture: independent agency networks can deliver holding group-scale services, without the red tape. But to scale effectively, the industry must tackle coordination, training, and tech infrastructure gaps head-on.

SBS UK and EMEA managing director Jason Warner said: “This is a make-or-break moment. Independent agencies offer the agility and creativity clients want – but legacy deals, tech gaps, and outdated perceptions are slowing the revolution just as it gains momentum. The data is clear: collaboration is thriving, but infrastructure and perception need to catch up.”