Tough Times in the World of Advertising and Marketing

While the CEO of the National Bank may insist that “now is not the time to panic” in his latest address on the economy, it’s hard to ignore the stagnation weighing on the world of advertising and marketing. Two digital strategists recently spoke about the impact of this slowdown on agencies and their workers.
When the economy stagnates, all sectors are affected. However, the marketing industry seems particularly vulnerable. That’s the message Jonathan Nicolas, founder of the GLO agency, has been emphasizing in his recent LinkedIn posts.
“The advertising industry is going through an unprecedented crisis,” he announced in a video on December 10. “In 2024, companies’ marketing budgets have dropped to 7.7% of their revenue—one of the lowest levels in the past decade. Even at the worst of the pandemic, investments in agencies and internal talent had never been this low.”
The president of GLO highlighted another alarming statistic from A2C, stating that 63% of agencies had made layoffs in 2024. With an economic growth forecast of just 1.5% for next year in Quebec, Jonathan Nicolas does not foresee a “recovery” in 2025.

A Direct Impact on Industry Professionals
In a recent post on the Facebook group Les Pros du Web, Rachel Houde Simard shared her firsthand experience of how this downturn is affecting advertising and marketing professionals:
“It’s no surprise when I say the economy is struggling, and it directly impacts our industry. Requests for assistance [at BEC] are increasing significantly, but donations are dropping just as much. So, I’ve had to focus my energy on ensuring that no one in our community is left to suffer.”
Rachel Houde Simard has been involved with BEC for several years and became the regional director of BEC-NABS this year.
“We’re receiving more and more requests for help from freelance creatives who can’t make ends meet due to a lack of contracts. Too many freelancers, not enough work… Traditional media professionals who are struggling to find new positions… It’s keeping the team busy, and my job is to ensure we can fund everything so that no one in Quebec falls through the cracks.”
AI: The Elephant in the Room
Beyond the economic slowdown, Jonathan Nicolas points to a much deeper “technological” issue currently disrupting the marketing world.
“The elephant in the room is artificial intelligence. A recent study by Statistics Canada reveals that 57% of jobs in the professional services sector—including advertising agencies—are at risk of being replaced. This makes it the second most vulnerable industry in Canada.”
The GLO president explains that, to hide productivity gains brought by AI, agencies have shifted toward “productization,” meaning they sell their services at flat rates rather than hourly billing.
“It’s a strategy with limits, just kicking the problem down the road. (…) With AI, clients can now handle many complex tasks themselves—tasks for which they were overcharged until now. To find real solutions, we’ll need to be transparent and ask the tough questions,” he adds.
Agencies will have to reinvent their service offerings—a shift that some professionals may find unsettling.
“The most competent person won’t necessarily be the one with the most experience, but the one who is the most up-to-date. (…) We need to become champions of continuous learning.”
Let’s hope the industry finds both creativity and solidarity to tackle these challenges!
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