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EMARKETER

Ad Agency Trends 2026

Legacy Models Yield to an AI-Driven Future

Report by Paul Verna  |  Jan 14, 2026
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Report
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Table of Contents
Executive Summary
Ad agencies in 2026 face a dynamic, unsettled market as they fight for relevancy
The biggest acquisition in decades caps a wave of consolidation
Brand marketers’ use of AI threatens the agency model
In-housing can be a stressor on agencies—but also an opportunity
Agencies are struggling with a Gen Z staffing gap
Economic uncertainty will remain a challenge for agencies
Recommendations for agencies
Sources
Media Gallery
About This Report
Ad agencies face AI disruption, consolidation, in-housing, and economic pressure. Legacy models are cracking as clients automate more work, forcing agencies to rethink their business strategies—or risk falling behind.
Topics
Advertising Agencies
Artificial Intelligence (AI)
Business Strategies & Trends
US
Table of Contents
Executive Summary
Ad agencies in 2026 face a dynamic, unsettled market as they fight for relevancy
The biggest acquisition in decades caps a wave of consolidation
Brand marketers’ use of AI threatens the agency model
In-housing can be a stressor on agencies—but also an opportunity
Agencies are struggling with a Gen Z staffing gap
Economic uncertainty will remain a challenge for agencies
Recommendations for agencies
Sources
Media Gallery

This report examines how AI, consolidation, and in-housing are reshaping ad agencies in 2026. As automation squeezes fees and jobs, agencies that pivot to data, strategy, and scalable services can defend relevance and margins.

Key Question: What are the biggest challenges that ad agencies currently face, and how can they respond?

Key Stat: While worldwide ad spending grew by 8.6% YoY in 2025, holding company revenues fell by 1.2%.

Since 2023, Media Ad Spend Growth Has Exceeded Agency Holding Company Revenue Growth
E-Mail ChartDownload

authors

Paul Verna

Contributors

Rahul Chadha
Director, Report Editing
Eleni Digalaki
Vladimir Hanzlik
Executive Editor and SVP, Content
Kyndall Krist
Senior Copy Editor
Penelope Lin
Director, Data Visualization
Emma Noyes
Graphic Designer, Data Visualization
Minda Smiley
Tracy Tang
Matt Torpey
Senior Chart Editor
Yoram Wurmser
Principal Analyst
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