Overview of the Industry

Agencies are facing several simultaneous pressures:

• Squeezed profit margins
• An ongoing shift in advertising spend toward major international digital platforms
• Increased client demands regarding performance and ROI measurement
• A rise in competitive bidding and a decline in long-term contracts
• Rising labor costs due to a shortage of specialized talent

In this context, they are demonstrating great resilience and continue to support the growth of the brands they serve.

• 5% revenue growth between 2022 and 2024
• Average annual client growth of 2%
• Long-term business relationships, lasting an average of 5 to 10 years

Thanks to their solid and agile structures, agencies act as true agents of transformation:

• By supporting brands in their strategic planning
• By providing an objective perspective in a complex environment
• By staying abreast of major trends that are transforming markets

It should be noted that the agency market in Quebec is undergoing a consolidation trend, partly driven by the reorganization of major international groups (such as the 2025 Omnicom/IPG merger) and the changing economic landscape. This trend takes several forms:

• Mergers of agencies to achieve critical mass
• Acquisitions by integrated groups offering full-service solutions (creative, media, digital, data, production, AI, etc.)
• The rise of hybrid models combining permanent employees and networks of independent contractors

Agencies here face three major challenges (just like agencies around the world):

A. Labor Shortages and Workforce Transformation
The main challenge remains attracting and retaining talent.

In particular, agencies are looking for:

• Digital strategists
• Data specialists
• Media performance experts
• Multiplatform content creators
• Generative AI specialists
• Digital experience developers

However, several factors complicate recruitment:

• Competition from large tech companies
• Remote work, which allows Quebec talent to work for foreign employers
• Rapidly evolving skill requirements

According to Canadian analyses on AI, the skills gap is currently the main obstacle to the integration of new technologies in businesses. More than half of organizations are now focusing on reskilling their staff and providing ongoing training.

B. The Impact of Artificial Intelligence
AI represents both a threat and an opportunity.

The Risks
It challenges several traditional activities:

• Content writing
• Advertising customization
• Visual production
• Automated media buying
• Performance analysis

The Institut du Québec estimates that approximately one in five Quebec workers could see their jobs significantly transformed by AI in the coming years.

C. Changing Customer Expectations

Brands are now looking for:

• Support with business strategy
• Measurable results in real time
• Hyper-personalized campaigns
• A multiplatform presence
• Continuous content production
• Rapid integration of new technologies

Campaign lifecycles are becoming significantly shorter, increasing operational pressure on teams.

Agencies make a significant contribution to Quebec’s economy, as evidenced by the following data:

• $1.53 billion in value added to the province in 2022
• Design and advertising as key drivers of growth that same year
• 11,036 jobs in 2023: a skilled and multidisciplinary workforce
• One of the highest ratios of contribution to GDP per direct job

Beyond their economic impact, these agencies generate tangible cultural and social benefits.

A driving force for local culture

• Nearly seven (7) out of 10 agencies carry out projects in the arts, culture, entertainment, or sports sectors
• 84% prioritize Quebec media in their strategies
• 62% hired UDA and ACTRA artists in 2024, 91% of whom are from Quebec
• Average annual increase of 14% in spending related to hiring artists (2022–2024)

A Socially Committed Industry

• An average of $80,000 in pro bono services per agency in 2024
• 90% of medium- and large-sized agencies have implemented social impact initiatives

Agencies foster highly collaborative work environments that encourage creativity and continuous learning.

They play a key role in developing talent and the next generation of professionals:

• 94% invest in continuing education
• 92% have initiatives to support young talent
• 75% have an annual recruitment budget

They also stand out for their diverse and inclusive workplaces:

• 63% of team members are women, 46% of whom hold leadership positions
• Strong representation of LGBTQ+ communities and ethnocultural groups

Agencies contribute directly to brand performance by combining creativity, expertise, and strategic vision.

• 74% support brands with business strategy
• 69% with repositioning
• 66% with growth strategy

In a landscape marked by the rise of artificial intelligence, their value relies more than ever on human expertise that is difficult to automate:

• Strategic vision and storytelling expertise to maximize the impact of marketing initiatives
• Cultural understanding, which is essential to the relevance and authenticity of communications
• Expertise in complex issues, thanks to a diversity of expertise and synergy among specialists
• Guidance on technology integration, including the responsible use of AI