Dan Gray is the Co-Founder and CEO of Vendry
If the Agency of Record (AOR) were a landline, it would still work, but it sure wouldn’t be ringing off the hook. Consider the default traditional agency model that marketers, creative executives and communications professionals have relied on for years, broken. Dead. Even major brands are walking away from it. In 2024, General Motors abandoned its traditional agency‑of‑record system entirely, instead, appointing a roster of specialized agencies rather than relying on a single long‑term partner.
While saying the AOR is dead may seem dramatic, it’s a question that professionals have pondered for years, driven by tightening budgets, faster decision-making times and high expectations that every dollar spent needs to deliver measurable return on investment (ROI). The old model of a single, all-encompassing, long-term agency partnership no longer fits the reality or needs of leading brands. We’re seeing the same thing at Vendry, where we run 50+ agency RFPs a month. Brands are coming to us after having a single AOR for decades, looking for agencies that can plug in quickly and deliver impact in their specific niche, without the commitment of a long-term contract.
The Outdated Model
The AOR was built for a time when campaigns moved slowly, budgets were high, and media channels consisted of the local print newspaper. Brands brought on one single agency to do it all: design, PR, marketing, research, media buys. Success was measured by whether a campaign was completed on time and within budget, but not by speed, expertise or measurable impact.
Options were limited, loyalty was king, and there was no other model. It was sticking with the status quo. Today, brands can’t wait months for a strategy or proposal. Campaigns need to pivot almost instantly if needed, and a one-size-fits-all agency often lacks the expertise or niche knowledge required for each business or media channel. This pain point is real, especially today, and often results in client friction, slowed growth and missed opportunities.
What Comes Next: Specificity and Flexibility
Today’s brands are breaking down the traditional AOR model into shorter-term, flexible agency partnerships. Instead of a full 12-month retainer with one firm handling all creative needs, brands are increasingly seeking experts for specific functions: a social media firm for day-to-day content, a data-driven agency for earned media relations, or an advertising agency for the initial launch of a new tech product. These partnerships are often campaign-based, with a specific goal and end date, allowing brands to move faster and pivot without being tied to a single, rigid contract.
Technology makes this transition easier than ever. Digital platforms help teams discover agencies, vet for fit and expertise, and manage agency relationships effectively. It’s a clear new path for agencies: embrace your niche, showcase your expertise and become an extension of your client’s team. Thriving in this new age is about flexibility and specificity, not widespread generalization.
Embracing the New Normal
The AOR is no longer the default for agencies, but the new normal is about becoming a trusted partner of choice. What agencies need to do now is deliver results, adapt to changing industry and client priorities, and maintain a deep knowledge of their field. Agencies should no longer be working for months to win an extensive, year-long partnership. They should be honing their skills and adding value to internal teams from day one. Embracing this mindset future-proofs agencies for a landscape defined by speed, specialization, and constant change. The most successful partners will be those who act as extensions of their clients’ teams, are proactive, and focused on delivering impact immediately.
The AOR isn’t dead because it failed – it’s dead because marketers and brands have outgrown the old model. The future belongs to companies that can build flexible, intentional, results-driven partnerships: choosing the right partner, for the right job, at the right time.
