Chris Hogan sits down with Daniel Willis, Chairman and CEO of Claxon agency, to tackle the real challenges facing agencies today—from shrinking budgets to the AI revolution.

The State of Agency Land

Dan doesn't sugarcoat it: times are tough. Marketing budgets have shrunk to 30-40% of what they were just two years ago, yet boards still expect the same level of growth. The result? Agencies are doing more work for less money, margins are being squeezed, and more agencies are closing their doors than he's seen in his seven years in the industry.

AI: Threat or Opportunity?

Both Chris and Dan believe AI is a game-changer, but not in the way many fear. Dan's philosophy is simple: "AI won't replace agencies, but agencies that use AI will replace agencies that don't." The key? Let humans do the creative thinking and ideation, then use AI as a tool to execute those ideas more efficiently. Claxon has been using AI to create campaigns for $20-30K that would've cost $80-150K traditionally—properly democratising high-quality creative work.

Beyond the Business: Wisdom for Founders

The conversation goes deep into what it takes to scale successfully:

• Advisory boards over business coaches: Dan's not shy about his views here—he reckons most business coaches are a waste of money. Instead, he strongly advocates for building an advisory board of experienced people who genuinely want to give back. Claxon had a six-person advisory board when it had only four staff.
  
• Mental health matters: Both blokes open up about their struggles. Dan shares his battle with severe anxiety and panic attacks that led to some dark times, whilst Chris talks about his own challenges with depression. Their message? Sort your mental health first, because without it, nothing else matters.
  
• The power of silence: Dan champions taking time away from constant input—no podcasts, no music, just thinking time. Like fasting gives your body time to heal, mental quiet time lets your brain solve problems it couldn't tackle when distracted.
  
• Knowing your strengths: Dan's candid about not being the best operator—his strengths are relationships, vision, and commercial strategy. The lesson? Hire people who are brilliant at what you're not.
  

The Bottom Line

Despite the challenges, both Chris and Dan reckon it's an incredibly exciting time to be in the agency game. Good humans and great agencies are more important now than ever. The key is embracing change, using AI as a tool (not a replacement), and, most importantly, doing it together rather than competing.

Agencies aren't going anywhere—they're just evolving.