A SHIFTING GEO-POLITICAL ENVIRONMENT

As clients have relied on global operational hubs, agencies have followed.

Supply chain fragmentation will introduce further nuance within local markets, with agencies needing to cater accordingly.

Additionally, as the tariff environment evolves (foreign film production is now in the cross-hairs) distributed global models may face increasing cost pressure.

POTENTIAL SCENARIOS:

• Delivery: Off-shore delivery margins may be squeezed

• Technology: Infrastructure localization (market-specific tech stacks and data centers)

• Centralization: Reorganizing account teams to prioritize local decision-making

• Partnerships: Creating redundant vendor networks to mitigate tariff risks

• IP: Localizing licensing structures to minimize cross-border IP transfers

• Production: Rising expenses for cross-border content production and distribution

The variety of potential risk cases further strengthen the case for investment in technology to localize and gain incremental margin.