Agencies will abandon their traditional role as client representatives and transform into diversified marketing solution providers offering execution services, managed solutions, proprietary products and strategic partnerships, according to Forrester’s 2026 Marketing Agencies Predictions.
This shift is driven by a decade of structural pressures including project-based work replacing retainers, marketing insourcing, procurement pressures, consolidation, and AI disruption that will force agencies to seek new revenue streams and accept greater business risk.
“Your agencies will no longer act solely as your agents but also as owners of products/solutions, resellers of technology partnerships, and developers of emerging capabilities,” said Jay Pattisall, VP, principal analyst at Forrester.
“Several forces combine to bring about this shift. Low-margin project-based engagements have replaced once lucrative retainer fees.
“Two decades of marketing insourcing have created a saturated market, commoditizing creative ideation and execution.
“Consistent procurement pressure in the name of cost efficiency has forced service providers to monetise media, technology, and data.
“AI and automation is disrupting agencies’ labour-based economic model, as well as their operational workflows.
“The result is an industry in rapid change — and by the end of 2026, marketing agencies will be materially changed.”
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