The 2025 Guide to the Best Agency Structure

Companies across multiple industries rely on the expertise of agencies. According to Deloitte, businesses spend over $700 billion globally on outsourcing business-critical tasks to third parties. Focusing on the growth of your agency presents increasing opportunities to source new business and clients. Streamlining your ad agency structure makes your whole organization more efficient, productive, and competitive.

Benefits of an efficient ad agency structure

Choosing the right agency structure can determine how your teams work and who they collaborate with. This way, you gain a clear understanding of everyone’s roles and responsibilities. The structure that works best for you might be one that encourages an “all hands on deck” approach. This may work well for small organizations or startups where roles are less sharply defined.

For larger organizations or teams including employees with highly specific skill sets, a more hierarchical structure might help ensure a smooth chain of command.

The benefits of finding a structure that works for you include:

• Improved team productivity
• Clearer communication channels
• Better resource allocation
• Enhanced client satisfaction

• Increased collaboration
• Smoother communication
• Reduction of data siloes — where some areas of the agency struggle to get information from other departments or systems
• Reduced friction and conflict when allocating tasks and responsibilities
• Actions that align better with company goals
• Better client experiences

This last point is critical. When agencies become more efficient and collaborate better, they perform more effectively for their clients. This garners better client feedback, organically boosting the agency’s reputation and promoting growth.

How ad agency structure influences efficiency and effectiveness

Agency team members who don’t understand their roles and responsibilities fully won’t be as productive as those who do. Likewise, employees who aren’t sure who they should report to or who manages particular teams will struggle. They might send reports to the wrong person or refer a client to an inappropriate department.

Mistakes like this take time to rectify and impact client experiences. An ill-defined agency structure can also make what resources firms require to support their teams unclear. For example, investing in the right agency software can help allocate projects to the right teams and individuals and help managers track progress.

Image caption: Bonsai business software for agencies helps allocate projects appropriately within your agency structure and track progress accurately.

Image source: Author screenshot

Competitiveness

Once you have clearly defined roles and responsibilities and clear channels of communication, you free up time previously lost due to friction-heavy processes. Increasing efficiency effectively makes businesses more dynamic and competitive. When you’ve got more time and resources to focus on innovation and meeting business goals, you’re more likely to stand out from the crowd.

How to reduce onboarding time for new hires

Increasing your agency’s reputation attracts top talent as well as new clients. With the right agency structure, recruitment and hiring processes become simpler. Candidate info goes to the right personnel and systems, prompting swift and accurate communication with applicants. This makes onboarding faster and ensures a much more pleasant experience for everyone concerned.

Recruitment specialists Zippia reported that of employees who leave within six months, 23% said they might have stayed with better-defined roles and responsibilities. A suitable agency structure helps with both employee retention and onboarding.

Types of ad agency structure

How do you know what type of agency structure to choose? There are many variants, each with benefits and challenges. Some suit larger agencies, while others suit smaller outfits or those that bring together multiple freelancers.

Let’s take a look.

Hierarchical ad agency structure: traditional top-down approach

This ad agency structure usually has a CEO and possibly other C-suite members at the top of the hierarchy. They manage team leaders or departmental managers. These managers then oversee lower-level management. Entry-level employees are at the bottom of the hierarchy.

The advantages of this structure provide clearly defined responsibilities and state who reports to whom. Challenges can include rigidity, resistance to change, and data siloes caused by inflexible inter-departmental processes.

Flat ad agency structure: emphasis on fewer levels of management

A flat management structure indicates that all employees have some level of autonomy. This places higher levels of responsibility on individual team members.

This can boost innovation and foster a culture of collaboration. However, it can lead to uncertainty regarding who has ultimate responsibility for decision-making or handling challenging situations.

Matrix ad agency structure: combining functional and project-based structures

Matrixes tend to focus on projects and the stakeholders involved in those projects. Everyone working on a project will report to multiple leaders. This might be their own manager, their departmental head, project leaders, and other stakeholders, including clients.

They may also report to other departmental leaders to assist in collaboration. For example, a digital advertising project may require input from marketing, sales, and social media specialists. Each of the people the project leader liaises with or reports to becomes part of the matrix.

A matrix agency structure can be highly flexible and effective at removing data siloes. However, this structure is often complex to manage.

Network ad agency structure: a more fluid and flexible approach

Networks are connections of often disparate groups of employees across various departments. These groups may have their own managers but they may also be completely autonomous. One example is a marketing agency that has a pool of content creators. Each of these freelancers is part of the network and reports to the relevant stakeholders. However, they’re also individual entities and aren’t solely associated with the agency, in many cases.

Networks are highly flexible. They promote granular hiring budget management via the acceptance of temporary workers, in some cases. They also promote communication and collaboration. However, implementing corporate or client-based rules and policies is more challenging across multiple departments and external parties.

Choosing and understanding your agency structure allows you to allocate tasks with ease. It also empowers team members to ask the right people for support and collaborate effectively. Investing in platforms that complement your organizational structure enables scalability and increased efficiency.

For agencies adopting a network structure, partnering with temp agencies can streamline the process of sourcing qualified professionals for short-term projects. Understanding how temp agencies work can enhance your agency's adaptability and efficiency.

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Key components of ad agency structure

Wherever you stand on the agency structure debate, it’s important to note that no structure can be considered the “best.” Some work well for certain types of companies and others don’t. Choosing the right agency structure is about understanding the major components of effective organizations. Decide whether these components are a high or low priority for you. This will help you visualize the right hierarchy to achieve your business goals.

Leadership and management roles and responsibilities in ad agency structure

All structures must have leadership in place. Even in mostly flat management structures, there must be a final decision maker. There must also be someone who can handle queries and challenges regarding:

• Financial decisions
• Human resources
• Project management
• Client relationships
• Compliance and legal matters

• Finances
• Human resources (HR)
• People management
• Client relationships
• Marketing

You may decide not to have a traditional structure with a chief financial officer (CFO) or other C-suite executives. However, you still need to decide who has ultimate responsibility over these areas and how employees raise concerns or queries.

How departments and teams are organized in ad agency structure

Every agency has teams or departments. These may be sharply defined or you may have overlap. For example, your marketing specialists may also work in the sales teams and social media departments. Make sure you define what teams you need and exactly who team members should report to. Make it simple for teams to communicate and share data safely and securely.

How communication channels ensure effective information flow in ad agency structure

On that last point, all communication should be streamlined and simple. If you need the marketing teams to have direct access to your IT support professionals, create workflows that enable that. If you want to empower clients to liaise directly with sales managers, ensure you have the right form on your website or client documentation.

One of the best ways to eliminate data siloes is to invest in software platforms that support communication. Whether you’re a creative agency or a recruitment agency, tools that encourage collaboration and define task responsibility promote efficiency. Your software should be like your agency structure chart: simple to understand, yet packed with features that benefit your entire team.

Image caption: Bonsai agency software’s intuitive, clean interface.

Image source: Author screenshot.

How decision-making processes work in ad agency structure

One of the most vital aspects of your agency structure is understanding who has the final say in multiple situations. Once you define decision makers for particular processes, you start to understand your management structure. This can, in many cases, underpin your entire organizational hierarchy or network.

Variations in agency structure by type and size

How agency type influences organizational roles

Agency structure varies significantly depending on the type of services offered. For example, a creative ad agency typically has roles like art directors, copywriters, and creative strategists at its core. In contrast, a digital marketing agency focuses more on SEO specialists, social media managers, and data analysts. Understanding these distinctions helps freelancers and small business owners tailor their team or partnerships to fit the specific demands of their niche.

For instance, a full-service ad agency combines multiple functions, requiring a layered structure with account managers bridging client needs and creative teams. Meanwhile, specialized agencies, such as media buying firms, often have flatter structures focused on negotiation and analytics. Recognizing these differences allows small agencies to allocate resources efficiently and avoid overstaffing roles that don’t align with their service type.

To apply this, evaluate your agency’s core offerings and identify the essential roles that support those services. Use tools like Trello or Asana to map responsibilities and workflows based on your agency type. This approach ensures clarity in job functions and improves collaboration, even with small teams.

Impact of agency size on management layers and communication

Agency size directly affects how many management layers are necessary and how communication flows. Small agencies with fewer than 10 employees often have a flat structure, where team members wear multiple hats and report directly to the founder or managing director. This setup speeds decision-making but can strain leadership if roles aren’t clearly defined.

As agencies grow beyond 20 employees, introducing middle management becomes crucial. Positions like project managers or team leads help distribute workload and maintain quality control.

For example, a medium-sized agency might have separate departments for creative, strategy, and client services, each led by a manager. This structure supports scalability and clearer accountability but requires formal communication channels like regular meetings and project management software such as Monday.com or Basecamp.

Small business owners should assess their current team size and complexity to decide when to add management layers. Using employee feedback tools like 15Five can help identify communication bottlenecks. Implementing structured check-ins and defined roles early can prevent confusion and burnout as the agency grows.

Adapting agency structure for hybrid and remote teams

The rise of remote and hybrid work models in 2024 has reshaped how ad agencies organize their teams. Agencies embracing remote talent often adopt more flexible, decentralized structures. This means relying heavily on digital collaboration tools like Slack, Zoom, and Google Workspace to maintain transparency and productivity across locations.

For example, a small agency with a remote creative team might use cloud-based project management to assign tasks and track progress in real time. Leadership roles evolve to focus more on coordination and culture building rather than direct supervision. This requires clear documentation of processes and expectations to keep everyone aligned despite physical distance.

Freelancers and small agencies should consider hybrid structures that combine in-person and remote work based on project needs. Regular virtual check-ins and using time-tracking apps like Toggl can help maintain accountability. Adapting your agency structure to support remote work enhances flexibility and access to diverse talent pools without sacrificing efficiency.

Popular agency hierarchy models and organizational charts

The traditional hierarchical model

The traditional hierarchical model organizes an ad agency in clear layers of authority, starting with the CEO or managing director at the top. Below them are department heads, such as creative, account management, media planning, and production leads. Each department then has teams and specialists reporting up through this chain.

This model works well for agencies with 50 or more employees because it clearly defines roles and responsibilities. For example, a creative director oversees art directors and copywriters, while account managers handle client communications. Tools like Microsoft Visio and Lucidchart can help visualize these organizational charts for clarity.

To implement this model, start by listing all key roles and grouping them by function. Then, assign reporting relationships to create a top-down structure. This clarity helps freelancers and small teams understand where to direct questions and how projects flow through the agency.

The flat organizational model

The flat organizational model reduces management layers, promoting collaboration and faster decision-making. In this structure, teams often work cross-functionally without strict reporting lines, which suits smaller agencies or startups with fewer than 20 employees.

For example, a flat agency might have groups of creatives, strategists, and account leads all reporting directly to the agency owner or a small leadership team. Tools like Asana and Trello support this model by enabling transparent task tracking and team communication without rigid hierarchies.

To adopt a flat structure, focus on building strong communication channels and clearly defined project roles rather than formal titles. This approach encourages freelancers and small business owners to collaborate efficiently and adapt quickly to client needs.

The matrix organizational model

The matrix model blends functional and project-based structures, where employees report to both a department head and a project manager. This dual reporting helps agencies manage complex campaigns requiring input from multiple specialties.

For instance, a graphic designer may report to the creative director for skill development but also to a project manager for day-to-day campaign tasks. Agencies using this model often rely on project management software like Monday.com or Wrike to coordinate responsibilities and deadlines.

Freelancers and small agencies can implement a simplified matrix by assigning clear project leads while maintaining functional expertise oversight. This balance improves resource allocation and client responsiveness without creating confusion about accountability.

Choosing the right structure for your agency

Selecting an agency structure depends on your team size, client complexity, and workflow preferences. Larger agencies benefit from hierarchical or matrix models to manage specialization, while smaller teams thrive with flat structures that emphasize flexibility.

Evaluate your current challenges: if communication bottlenecks occur, a flatter model may help. If roles overlap or accountability is unclear, a hierarchical or matrix approach can provide needed clarity. Tools like HelloBonsai's project management and contract templates support whichever structure you choose.

Start by mapping your existing roles and workflows, then test adjustments incrementally. Clear organizational charts and defined reporting lines improve efficiency and client satisfaction, making your agency more competitive in 2024 and beyond.

Common roles and hierarchy levels in an ad agency

Understanding the leadership and management roles

The leadership in an ad agency typically includes the executive team responsible for strategic decisions and overall agency direction. Key roles include the Chief Executive Officer (CEO), Chief Creative Officer (CCO), and Account Director. These leaders set goals, manage client relationships, and oversee creative output to ensure campaigns meet client expectations.

For example, the Account Director acts as the bridge between clients and the creative team, ensuring that client needs are clearly communicated and projects stay on schedule. Meanwhile, the CCO focuses on maintaining the agency's creative vision and quality standards. Understanding these roles helps freelancers and small business owners identify decision-makers when pitching services or collaborating.

To engage effectively with an agency, target your communications to the appropriate leadership role based on your service. For instance, pitch creative work to the CCO or project management services to the Account Director. This approach increases your chances of forming productive partnerships.

Key creative and production positions

Creative roles are the backbone of an ad agency’s output, including copywriters, art directors, graphic designers, and video producers. These professionals develop the concepts, visuals, and content that bring campaigns to life. In 2024, many agencies use collaborative tools like Adobe Creative Cloud and Figma to streamline creative workflows.

Production teams handle the execution of these creative ideas, managing timelines, budgets, and technical details. Producers and Project Managers coordinate tasks and ensure deliverables meet quality standards. Freelancers offering specialized skills like motion graphics or UX design should understand these roles to align their proposals with agency needs.

When approaching an agency, highlight how your skills complement their creative or production teams. For example, a freelance video editor can emphasize proficiency with Adobe Premiere Pro and experience meeting tight deadlines, which appeals directly to production managers.

Support and client service roles that keep agencies running

Beyond creative and leadership roles, ad agencies rely on support staff such as Media Planners, Social Media Managers, and Data Analysts. These roles focus on campaign distribution, audience targeting, and performance measurement. In 2024, essential tools for these professionals include:

• Google Ads
• Facebook Business Manager
• HubSpot CRM

Client service teams, including Account Executives and Client Service Managers, maintain ongoing communication with clients to ensure satisfaction and manage expectations. These roles are critical for freelancers who provide services like social media management or analytics reporting because they often act as the liaison between the agency and external contributors.

To work effectively with these teams, demonstrate your familiarity with current marketing platforms and your ability to provide clear, timely updates. This builds trust and fosters long-term collaboration opportunities.

Innovative trends in ad agency structure

We’ve already seen that the traditional top-down hierarchy isn’t for everyone. However, it’s not only an agency’s leadership team that determines structure. External factors from emerging technologies to the rise in remote workers are all contributing forces.

How technology and digital transformation impact ad agency structure

Digital transformation is accelerating according to research experts McKinsey. Agencies understand that their clients want to engage with them via more online methods than ever before. This may include entire conversations on social media, or liaising exclusively by email. Zoom, Teams, and other video conferencing solutions, also have a major part to play.

Shifting technologies and client demands can easily impact the structure of an organization. Digital specialists may float from department to department to share their expertise. Networks and matrixes become more viable thanks to increased methods of communication and collaboration. An increasing desire for online communication could shrink traditional sales teams while expanding digital marketing teams.

Additionally, the increased availability of supportive business and task management software empowers agencies to choose organizational structures that work for them. They no longer have to tie themselves to traditional hierarchies simply because they don’t have access to the right resources.

How remote and flexible work arrangements rise in ad agency structure

Remote and hybrid work became the norm during the pandemic. However, according to Forbes, over 40% of employees still work remotely at least some of the time. The acceptance of this newer way of working empowers agencies to change their structures dramatically. The impact of embracing hybrid or flexible working includes:

• Greater flexibility in team collaboration
• Reduced dependency on physical office space
• Enhanced opportunities to hire freelancers from diverse locations

• Increased accessibility — disabled employees gain more opportunities
• The opportunity to hire a more diverse workforce
• More chance to attract top talent — flexible working is highly rated by 64% of prospective candidates
• Opportunities to restructure firms to include employees all over the country or world

Deciding on the importance of remote working for your agency helps you choose a structure that works for you. It can also empower your firm to consider freelancers as an integral part of your organizational plan. Just remember to use an appropriate resource to check current average freelance rates for the skills you require.

How artificial intelligence and automation integrate into ad agency structure

Artificial intelligence (AI) and machine learning (ML) have become integrated into many aspects of business. Chatbots, code generators, and image-generation tools all help firms streamline various aspects of business responsibility.

The right AI and automation tools could impact how agencies choose to structure their organization. AI-powered decision-making tools could reduce the need for a highly structured leadership team. Automation handles numerous tedious or time-consuming tasks, freeing up employees to innovate and collaborate.

One of the most vital aspects of AI in business is data analysis, particularly predictive analytics. With the right forecasting tools, agencies can plan ahead and consider structures that will meet their current and future goals and needs.

Challenges in implementing ad agency structure changes

Implementing structural change across an organization naturally comes with certain challenges. The ultimate goal of a structural redesign should be to better focus company resources on areas of the business that can promote growth. Understanding the following challenges helps you address them efficiently as and when they arise.

How to manage resistance to change in ad agency structure

It’s totally normal for agencies to experience resistance to change when suggesting major structural transformation. Change management is a vital aspect of ensuring smooth transitions. It’s so critical, in fact, that many organizations create dedicated change management teams. This reflects research from Gartner that shows 75% of firms expect increasing volumes of major change initiatives in the next three years.

The first stage is managing change is to expect it. Many employees will be comfortable in an existing structure, even if it stunts their chances to excel. They may fear the challenge of learning a new hierarchy. They may also simply believe the changes are unnecessary.

To mitigate resistance, consider these strategies:

• Recognize that change will impact different employees and teams in different ways.
• Listen and respond to feedback to get everyone to buy into any changes.
• Use your company’s values and culture to guide your choice of agency structure and the change process.
• Ensure remote workers and freelancers are as engaged as on-site employees using effective tools and collaboration software.
• Make a clear business case by tying structural changes to business goals and growth targets, using charts and presentations if needed.

• Ensure you effectively communicate the reasons for any structural change
• Highlight the benefits and make those relevant at an individual and team level
• Create open channels for feedback and communication throughout the process
• Be open to criticism — there may be challenges you have not considered
• Engage change management specialists with experience in reducing friction during transformational processes

Change will impact different employees and teams in different ways. Agency leaders should listen and respond to feedback to get everyone to buy-in to any changes.

How to maintain culture and identity during ad agency structure shifts

Your company’s values and culture should help guide your choice of agency structure. For example, if you value a culture where every voice is equal, a traditional hierarchical structure may not be well-suited to your firm.

You can also use your values to guide the process of change. Effective communication, clarity, and openness to feedback might tie directly to your company identity. Embrace those aspects and you should find that there is little to no negative impact to your agency’s culture.

Ensure your remote workers and freelancers are as engaged as your on-site employees. Remote employees who aren’t kept in the loop by managers are more likely to feel disengaged. This disengagement can be highly detrimental to company culture, especially if you aim for a network-style structure.

Use effective tools and collaboration software to ensure every member of staff is kept informed, no matter their location.

Image caption: Bonsai business software supports the instant addition of collaborators to any project.

Image source: Author screenshot

How to consider budgetary and resource factors in ad agency structure changes

It may be hard to engage budget allocators if there’s no clear evidence that the new structure offers financial benefits. Ensure that any decision to change your structure ties in to business goals and growth targets. Consider visualizing these factors in charts, graphs, and presentations.

The clearer you can make the benefits of the structural change, the more likely you’ll gain the budget and resources required to make it happen. Conversely, if you consider structural transformation and find the costs outweigh the benefits, stop and rethink. This may not be the right time to make this move.

Best practices in ad agency structure design

Every agency must meet client needs while not overburdening employees. Structural change can help achieve this when implemented in the right way.

How to tailor ad agency structure to goals and needs

Whatever structure you choose, you can adjust it to meet your agency’s specific needs. If you want to have on-demand specialists to handle ad-hoc client requests, a network structure may work best. If you regularly work on long-term projects with multiple stakeholders, a matrix format may be better suited to your needs.

As well as considering the kind of work you do and your client demands, think about your existing and future workforce. Are you planning to accelerate hiring soon? Do you plan to outsource freelancers or allow more flexible working? Your business goals can guide these types of decisions, in turn empowering you to make the right choice about agency structure.

Your overarching agency goals should also consider changing and emerging markets. Agencies that have a structure suited to today’s clients might struggle with increasing digital demands. McKinsey notes that operational model designers need to consider changing consumer needs and adapt accordingly.

Agencies that can consider all these aspects while keeping their business goals as a “true north” will inevitably experience growth.

How to ensure flexibility and adaptability in ad agency structure

As touched on above, adaptability is essential in rapidly evolving markets. Agencies must be ready to accept that there is no one-size-fits-all structure. Whatever general shape you decide on, adjusting it to your needs is essential.

Those changes aren’t necessarily a one-time event. Constantly listen to employee and manager feedback and assess client experiences to find where a structure is working. This also reveals where it may be falling down. Responding to challenges and making necessary changes helps your agency grow.

Structural issues may not require major transformational initiatives. For example, clients may note concerns about inconsistent invoices. A quick check might find one department uses a different invoice format than others. This could be a hangover from restructuring, but a quick, all-encompassing communication can fix it.

To ensure invoice consistency, use free online resources that generate identical invoices every time. This can also help stretch your budget further.

Image caption: Bonsai’s completely free-of-charge invoice generator.

Image source: Author screenshot

How to emphasize employee engagement and satisfaction in ad agency structure

Your agency structure works best when everyone across your teams is satisfied. Engaging them in the change process is the first step. When people understand why change is happening and how it benefits them, they are more likely to embrace it positively.

Once a structure is in place, continue monitoring employee engagement and satisfaction rates. If satisfaction dips shortly after, don’t panic. A learning curve is normal. Work with a change manager to decide how long to wait before expecting worker satisfaction to increase.

If satisfaction or engagement continues to drop, deeper issues may exist. These may not relate to the structural change. Research is essential to find the causes of disengagement. Use anonymous surveys, manager drop-in sessions, or “anything goes” forums to gather honest employee views.

Agency structures are changing in response to evolving client needs. The traditional hierarchy may be phased out in favor of flexible structures that provide faster results for clients. The right software can help you support client needs while increasing your employee satisfaction rates. Book a free trial with Bonsai and discover how.

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