"Media and creative agencies face a range of threats in 2026, from generative AI to media fragmentation and the continued dominance of Meta and Google's platforms. In response, few businesses in this sector have stood still. They've chosen to merge, acquire - or in the case of Dentsu, cast loose - to keep moving forward. The likely destination? A leaner sector that employs fewer people and trades on its tech bonafides and principal-media trading capabilities over its creative chops."
"It's not difficult to find examples of agencies cutting headcount. Omnicom, for example, shed thousands of staff positions in the last year; as of its latest earnings call, the company's leadership plan to pursue hundreds of millions of dollars more in "synergies". Employment figures published by Britain's Institute of Practitioners in Advertising (IPA) this month show a long-term trend playing out. Agencies staffed up during the pandemic years, but are now tightening their belts, leaving fewer jobs available."
"Consultancy MediaSense's "Agency Family Tree" shows a sector as tangled up as a medieval European dynasty. But while executives' yearning to consolidate their portfolios might render it out of date within a few short months, it's a snapshot of the industry as things currently stands (you might be best zooming in, though). The popular six-sided understanding of the holding company landscape has been demolished in the last 12 months. Omnicom has swallowed Interpublic Group, and now only Publicis Groupe and WPP register comparable revenue figures."
Media and creative agencies face multiple threats in 2026, including generative AI, media fragmentation, and the dominance of Meta and Google's platforms. Many agencies have responded by merging, acquiring, or divesting to adapt to industry pressures. The sector is moving toward fewer, leaner companies that emphasize technology credentials and principal-media trading capabilities above traditional creative strengths. Employment in agencies is declining after pandemic-era growth, with major holding companies cutting staff and British industry data indicating ongoing reductions. The familiar 'Big Six' holding-company landscape has shifted following recent high-profile consolidations.
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