Credit: Florian Klauer via Unsplash
The dip in jobs in the media agency sector is more evolution than disaster, according to industry insiders.
Agencies are becoming leaner, flatter and far more technology-led.
The number of people employed in Australian media agencies fell 5.1% to 4,411, according to the 23rd annual MFA Media Communication Industry Census pegged at September 2025.
The decline was driven by cuts in Sydney and Brisbane, partially offset by growth in Melbourne, broadly tracking the softening advertising market.
However, the majority of indie media agency owners are continuing to forecast growth in revenue in the next 12 months, rather than shrinking staff numbers and forecasts.
“Evolution in advertising is like upgrading from a flip phone to a smartphone,” said Ben Willee, Spinach’s executive director of media and data.
“It’s uncomfortable, a few familiar things disappear, and everyone complains for a while, but you’re not going back once you’ve seen what’s possible.
“What we’re seeing now isn’t a disaster; it’s the industry shedding skin, messy and a bit confronting, but necessary if it wants to keep up.
“Change in this business isn’t a strategy, it’s oxygen, and the real risk isn’t evolving, it’s doing it so cautiously that you end up perfectly built for a world that no longer exists.”
Sam Makwana, general manager at Impressive, said the numbers show a reshaping of the industry.
“Agencies are becoming leaner, flatter and far more technology-led,” said Makwana.
“At Impressive, AI is now embedded into day-to-day workflows, with tools such as ChatGPT, Claude and others supporting everything from analysis to execution.
“There is also a noticeable shift towards multi-skilled talent. Team members are increasingly upskilling in areas like coding, automation and data analysis to improve efficiency and reduce manual work.
“In parallel, we are placing greater emphasis on hiring experienced individuals who can bridge both strategy and execution, particularly in client-facing roles where clear articulation and commercial understanding are critical.
“Overall, the industry is moving away from layered structures towards agile teams that prioritise delivery, performance and adaptability.”
Makwana said growth in Melbourne versus the shrinkage in Sydney appears to be a natural rebalancing of the market.
Sydney has historically been the centre of the agency ecosystem, but it is now reaching a level of maturity and saturation.
In contrast, Melbourne has seen strong growth in independent agencies that are increasingly competitive and capable of servicing national clients.
“We are also seeing more brands becoming location-agnostic in their agency partnerships,” said Makwana.
‘For example, while Impressive is Melbourne-based, a number of our key clients are headquartered in Sydney. Cost efficiency may also play a role, with Melbourne often offering a more competitive operating environment, both in terms of talent and service delivery.
Roles are becoming more difficult to fill, particularly as client expectations continue to rise. There is a growing demand for highly skilled talent who can deliver measurable performance outcomes and demonstrate clear return on investment.
“While there is no shortage of candidates, there is a gap when it comes to the level of experience and capability required in today’s environment,” Makwana said.
“This is contributing to longer hiring cycles. At the same time, we have seen an encouraging influx of international talent, particularly from the UK, which is helping to strengthen the talent pool and bring valuable global experience into the market.
Lucy Seward, head of marketing at Hatched, said the MFA Census, despite the headlines that call out a contracting industry, paints an exciting picture of an industry that is genuinely changing for the better.
“With the gender pay parity gap narrowing to just 1.4% and nearly half of all CEO, MD and GM roles now held by women, alongside real growth in cultural diversity across agency workforces, the data reflects progress that actually means something,” Seward said.
“A big part of that shift comes down to more inclusive people policies and practices. It's encouraging to see so many agencies adopting policies and programs such as celebration leave, flexible working and strong parental leave offerings that attract diverse talent and also create the conditions that make people want to stick around.
“The key to implementing policies that make a real difference is to put decisions in the hands of the people they support. At Hatched, we do this by empowering diverse voices through our junior leadership team, the Shadow Board, and our Belonging & Connection team.”
Shai Luft, COO & co-founder at Bench Media, said the census reflects what many are already seeing on the ground.
“The industry isn’t simply shrinking, it’s being reshaped,” Luft said.
“A 5% reduction in workforce points to structural change more than cyclical pressure. Automation, AI and platform-driven buying are reducing reliance on traditional roles, while increasing demand for more strategic, data-led and commercially accountable skill sets.
“At the same time, broader pressures are compounding this shift. More brands are bringing capabilities in-house, SMI data has softened post-election, and ongoing macroeconomic uncertainty is impacting spend and agency margins.
“Fewer people don’t have to mean less value, but it does mean quality matters more than ever. The focus should be on senior thinking, clarity of strategy and accountable execution.
“The agencies that deliver that will stand out, regardless of size.”
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