Tuesday, June 30, 2026

NEW INC. MAGAZINE COLUMN FROM HOWARD TULLMAN

 

Forget AI: This is the Real Trend Making Life Miserable for Traditional Ad Agencies

Here’s why brands are ditching massive agencies for this low-cost alternative.

EXPERT OPINION BY HOWARD TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH INVESTORS @TULLMAN

Jun 30, 2026

While the ad agency world freaks out about A.I. being infinitely better than humans at a multitude of tasks, including every kind of content creation, it turns out that there are much more subversive activities underway. These efforts by influencers, remote gig workers, and at-home creators are far more likely to make life really miserable for traditional advertising executives, some of whom are still sucking down three-martini expense account lunches while the world shifts radically around them. Even the Apple TV+ show Your Friends and Neighbors presents a far more realistic view of the economic pressures and other personnel issues at agencies than you’ll find talking to execs from Madison Avenue who apparently haven’t yet gotten the memo.

The big firms and spin-outs that are trying to position themselves as new and innovative, youth-oriented enterprises are still largely hawking the same tired and antiquated pitches while offering expensive, highly polished creative, which is too slick and woefully off target. Sadly, those old models, stories and approaches no longer connect—emotionally or intellectually—with the demographics that every advertiser wants to target and reach.

If the customers and their audiences aren’t looking and listening, it doesn’t matter how wonderful your messaging and ads may be. You can tee me up for flattering articles in the old business magazines that might matter to my parents, but no one I know reads those rags or cares about anything they have to say. The giant agencies are out of touch and no longer have the access, reach or ability to connect to the people that matter, and yet these are the links and connections that the old-line agencies are still bragging about. It’s largely the same issue with cable, where the wrong crowd may be hearing the chatter, but even they aren’t listening to what’s being said or sold. It’s just background noise to keep them awake.

The game today is about an entirely new reality where massive teams and abundant resources and a decades-old track record really don’t matter, but where credible and authentic relationships and accessible networks of engaged fans are the keys to the kingdom. What smart advertisers, promoters and product managers are looking for and attracted to today is very simple—User Generated Content (UGC)—which is unvarnished, live, authentic, presented as peer-to-peer, easy and inexpensive to create, and immediately publishable at virtually no cost (thank the Internet for that) to millions of engaged fans and buyers.

The entire space has rapidly advanced and grown up, and now the content offerings are extensive and addressed to every conceivable market and interest. Even more importantly from the standpoint of any advertiser is the extent to which both the providers and the audience can be sliced and diced with degrees of accuracy and precision that only directly connected networks can offer. And finally, the actual cost to connect to the right audience in the correct context and at the right time is pennies compared to any other offering.

I’m watching several new startups, including Selfie, which offers a mobile app used to quickly create a personal digital twin, implement a comprehensive rollout plan that turns out to be ideal for one or more of these new fangled influencer networks because (a) the Selfie product and service is AI and mobile-first, so the phone app is the key; and (b) Selfie’s primary targets and ideal end users are, in fact, the very highly-regarded influencers already having tons of fans and followers who are active participants in these kinds of networks; and (c) the marketing brief for this Selfie campaign requires each influencer who joins the Selfie Influencer Network to download and build their own Selfie and create and post a demo video of their Selfie, along with an explanation of how they will be using it and why having their own Selfie makes sense for them and saves them time. Hard to imagine more of a win-win situation for all concerned.

But equally important to any new business or established firm thinking about using one of these influencer networks—even if your products or services aren’t quite as ideal as the Selfie app—are the selection, specification and management tools available to the client that permit practical choices including the age, gender, geography, video experience, presentation skills, other relevant skill sets, and size of the fan and follower audiences segmented by social media channel for each influencer that the client invites to participate in a given promotion across the network. In addition, the client can set other performance requirements and metrics as well as compensation arrangements for each influencer signing on to a specific campaign.

There are a growing number of players in the influencer network space and many of the newcomers most likely offer access to the same influencers who are under no obligation to provide their services exclusively to a single network. Each campaign stands alone—the costs are variable but incredibly modest compared to typical agency fees (there are no media or creative costs), and the entire commitment has a specific time frame and no further obligation beyond the initial campaign. Whatever your market, targets and budgets, this new channel is a must to check out before you start your next marketing programs.

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