ADVERTISING And MARKETING| FEATURE
How AI is rewriting the economics of advertising, from Kingston to California
The Inflection Point No One Could Ignore
In 2025, something quietly seismic happened in the advertising business.
Not a recession. Not a regulatory crackdown. Not even a platform shift.
The product itself changed.
What clients once paid agencies millions annually to deliver—search visibility, content, targeting, analytics—became increasingly automated, embedded, and in some cases, free.
In Jamaica, that shift showed up starkly in the financials of One Great Studio (1GS) headed and cofounded by CEO Dujane Browne . A company that had posted a $36 million profit flipped to a $25 million loss, even as revenues grew. The culprit wasn’t just rising costs or acquisition spend—it was structural.
Search engine optimisation (SEO), once a cornerstone service line, was eroded by AI-driven search experiences. Platforms like Google began answering user queries directly, reducing the need to click through to client websites—the very traffic agencies were hired to generate.
In simple terms:
the platform became the competitor.
When the Business Model Breaks
Kimala Bennett
1GS is not alone.
Its publicly listed peer, The Limners and Bards Limited (The LAB) headed by Kimala Bennett the founder and CEO, and agencies across the Caribbean are navigating the same underlying disruption:
1. SEO Is No Longer a Growth Engine
- AI-generated answers reduce click-through rates
- Zero-click search becomes the norm
- Content farms and keyword strategies lose value
2. Creative Production Is Being Compressed
- AI tools now generate:
- Copy
- Visuals
- Video
- Campaign structures
- What took teams days now takes minutes
3. Media Buying Is Being Platformized
Companies like Meta Platforms and Google are rapidly moving toward:
- Prompt-based campaign creation
- Automated targeting
- Real-time optimisation without agency intervention
The implication is profound:
Agencies are losing control of both creation and distribution.
The Caribbean Reality: Small Market, Big Shockwaves
In markets like Jamaica, the disruption is amplified.
Why?
- Smaller client pools mean less margin for error
- Fewer large retainers increase dependence on recurring revenue
- Talent migration makes reinvention harder
For 1GS, retainer revenue dropped from 82% to 72%—a warning sign in any agency model. Recurring income is the lifeblood of stability; its decline suggests clients are questioning long-term contracts in an AI-enabled world.
At the same time, the company invested heavily—acquiring DRT Communications and expanding capabilities in PR and media monitoring. Administrative costs surged. The strategy is clear:
Diversify or decline.
The New Agency Divide: Adapters vs. Legacy Holdouts
Across the region—and globally—agencies are splitting into two camps:
The Adapters (Emerging Survivors)
- Embedding AI into workflows
- Repositioning as strategic partners, not execution vendors
- Investing in:
- Data intelligence
- Media monitoring
- Brand strategy
- Reputation management
These firms see AI not as a threat, but as infrastructure.
The Holdouts (At Risk)
- Still selling:
- Manual SEO packages
- Static content calendars
- Labour-heavy creative production
- Struggling to justify pricing as clients compare costs with AI tools
The result:
margin compression, client churn, and eventual irrelevance.
From Service Provider to Strategic Operator
The agencies that survive this transition will not look like traditional agencies.
They will operate more like:
1. Decision Engines
- Interpreting AI-generated data
- Advising on business strategy, not just campaigns
2. Reputation Managers
- Monitoring brand sentiment in real time
- Managing crises amplified by digital virality
3. Integration Specialists
- Connecting client systems with platform AI tools
- Customising automation pipelines
4. Creative Directors—Not Creators
- Guiding AI output
- Ensuring brand consistency and originality
In this model, human value shifts up the chain.
The Client Perspective: Power, Efficiency—and New Risk
For clients, the AI revolution is undeniably attractive.
The Upside
- Cost reduction: Campaigns built at a fraction of previous budgets
- Speed: From concept to launch in hours
- Precision: Advanced targeting and real-time optimisation
- Access: Small businesses can now execute enterprise-level marketing
The Hidden Risks
1. Strategic Hollowing
AI can execute—but it does not inherently understand:
- Brand nuance
- Cultural context
- Long-term positioning
2. Creative Homogenisation
As more brands use similar tools:
- Campaigns begin to look and sound alike
- Differentiation declines
3. Platform Dependency
Relying heavily on ecosystems like Google and Meta means:
- Less control over data
- Exposure to algorithm changes
- Rising long-term costs once dependency is established
4. Reputation Exposure
AI-generated content errors can scale instantly:
- Misaligned messaging
- Cultural missteps
- Brand damage
Where This Is Going
The trajectory is clear:
1. Fully Autonomous Campaigns
Prompt → campaign → deployment → optimisation
All handled within platform ecosystems
2. Decline of Traditional Agency Fees
- Hourly billing disappears
- Value-based pricing emerges
3. Rise of AI-Augmented Boutique Firms
- Smaller, smarter, higher-margin teams
- Deep expertise over large headcount
4. Data Ownership Becomes the New Battleground
Agencies and clients alike will compete to control:
- First-party data
- Customer insights
- Predictive analytics
The Survival Playbook for Agencies
For firms like 1GS, The LAB, and others across the Caribbean, survival—and growth—depends on decisive action:
1. Kill Legacy Offerings Quickly
If AI can do it cheaper and faster, stop selling it.
2. Rebuild Around Strategy
Shift from:
- “We execute campaigns”
to - “We drive business outcomes”
3. Invest in Proprietary Intelligence
- Data models
- Insights platforms
- Industry-specific analytics
4. Own a Niche
- Industry specialisation
- Cultural expertise
- Regional insights
5. Partner with the Platforms—Don’t Fight Them
Leverage tools from Google and Meta instead of competing against them.
The Bottom Line
The story of One Great Studio is not a failure story.
It is a preview.
A preview of an industry where:
- Revenue can grow while profits collapse
- Core services can vanish within a year
- And survival depends on how quickly a company can redefine its value
Artificial intelligence is not just changing advertising.
It is deciding who gets to exist in it.
