Published on

July 2, 2025

Artificial Intelligence
eBook

Beyond Prompt Engineering: Why Media Agencies Need Context Engineering to Win with AI

While Most agencies use prompt engineering, the winning ones have moved to context engineering. Here's why it matters.
Akkio
Artificial Intelligence

Only 30% of agencies and brands have fully integrated AI across their media campaign lifecycle, yet nearly 90% of advertising industry organizations expect scaled AI adoption across the campaign lifecycle by 2027. While the industry races toward an AI-powered future, most agencies are still thinking about AI in fundamentally limited ways – and it’s costing them competitive advantage. 

The gap isn’t in AI adoption rates. AI adoption reached an all-time high, with global rates between 72 and 78%. Despite these astronomical figures, the real issue is that most agencies lack a strategic plan for moving beyond surface-level AI usage to the sophisticated context engineering that drives real campaign results.

The Hidden Cost of Prompt Engineering Thinking 

When agencies first explore AI, they often think in terms of prompts – asking ChatGPT to “write ad copy for high-end perfumes” or “analyze this campaign performance data.” While this approach is an effective introduction to AI, it limits true understanding of the potential. 

A majority – over 90% – of agencies and brands use general purpose tools like ChatGPT, Perplexity, and MetaAI, all of which are essentially sophisticated prompt engineering engines. Meanwhile, the agencies winning new business are implementing something far more sophisticated.  

Real AI implementation means your systems understand that when Nike's running a back-to-school campaign, historical Q3 performance data should be weighted differently than holiday data. It means knowing that your financial services client's compliance requirements aren't just a checklist—they're parameters that inform every creative decision and media buy in real-time.

The data reveals a telling pattern: companies with a high level of AI maturity tend to get 3X higher ROI than those just testing the AI waters. According to 92.1% of companies in 2023, investing in data and AI yields significant benefits, marking a sharp increase from the 70.3% who reported measurable outcomes from such investments in 2020.

The Context Engineering Advantage in Media 

Real AI-powered campaign management requires context engineering, the strategic orchestration of all relevant information within an AI system. For media agencies, this means:

Campaign Intelligence 

Historical performance data, client brand guidelines, audience insights, and competitive analysis all working together in a unified context rather than in isolated prompts. 

Dynamic Optimization

Real-time budget allocation decisions informed by cross-channel performance patterns and market conditions, not just readjustments based on yesterday’s data. 

Client-Specific Learning 

Each campaign builds on previous successes, with AI agents that understand your client's unique goals, constraints, and market position within the broader competitive landscape.

Multi-Modal Insights 

Creative assets, performance metrics, audience data, and market trends synthesized into actionable recommendations that consider the full campaign ecosystem.

Why This Matter for Agency Growth 

Agencies using context engineering aren’t just running better campaigns, they’re elevating their entire value proposition. Instead of simply executing pre-defined strategies, they become strategic partners who can predict what will work before spending a dollar of their clients’ media budget.

Consider the competitive landscape: 79.05% of marketers highlight AI's role in streamlining processes and boosting productivity, yet half of brands are concerned about a lack of transparency into how agency and publishing partners use AI on their behalf. Context engineering solves this transparency problem by providing clear, data-driven reasoning for every optimization decision.

The Revenue Impact

The numbers don't lie. The AI in marketing market is valued at $47.32 billion in 2025 and is expected to grow at a CAGR of 36.6% to reach $107.5 billion by 2028.

More importantly, 28.24% of marketers report that AI has significantly enhanced their competitive edge. Will your agency gain advantage through sophisticated context engineering, or will you remain stuck in the prompt engineering mindset that's becoming commoditized?

The question facing every agency leader today: Will your agency gain advantage through sophisticated context engineering, or will you remain stuck in the prompt engineering mindset that's becoming commoditized?

Context engineering isn't just a technical capability — it's becoming the core competitive advantage that separates market leaders from everyone else. As 92% of companies plan to increase their investment in AI over the next three years, the race isn't about whether your agency will adopt AI. It's about whether you'll master context engineering before your competition does.

The agencies that understand this distinction today will own the market tomorrow. The ones that don't will find themselves competing on price in a world where AI-powered strategic insight has become the new table stakes.

Ready to see context engineering in action?Discover how Horizon Media won an $800M deal using Akkio's AI-first platform.

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