Credit: Marcus Woodbridge via Unsplash
The advertising world is in for another bumpy ride in 2026.
The sector will feel the pressure from a decade of structural change, eroding the conventional agency approach, according to annual predictions by Forrester.
The global consultancy sees more agency mergers ahead, with a shrinking job market and a growing principal media business.
"In 2026, marketing agencies are no longer acting solely as agents, but as owners, resellers, consultants and as partners," said Jay Pattisall, VP and principal analyst at Forrester.
"As traditional agency models crumble under the weight of marketplace disruption, these firms will evolve from mere client representatives to purveyors of marketing solutions, selling execution, proprietary products, and innovative partnerships.
“The agency of tomorrow is less an 'agent' and more a dynamic, technology-driven enterprise that sells products and services to its customers."
Over the past 10 years, project-based engagements displaced retainers, marketing insourcing commoditised creativity, procurement pressure forced agencies to monetise media, and consolidation and acquisition chiseled away at agency distinctiveness.
And now AI is upending the agency business model.
These downward pressures, plus clients’ desire for agencies to take on more risk, set off a new race for revenue, says Forrester.
Forrester sees more big holding company deals following Omnicom’s takeover of IPG which will soon create the world's largest advertising group.
One possibility is Havas acquiring dentsu’s international operations. Another is that the new CEO at WPP, Cindy Rose, restructures ready for sale to private equity or Accenture.
Principal media will account for a third of total media under management, according to Forrester.
Reselling media inventory with a margin and guarantees will go mainstream in the new year. Omnicom’s acquisition of IPG expands its principal opportunities.
Forrester sees a 15% cut in agency jobs next year due to automation, redundancies and efficiency.
This is on top of headcount reductions in 2025 averaging about 8%.
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