Forrester has issued predictions for 2026 outlining key changes set to reshape the marketing agency sector through automation, consolidation, and the rise of creator-led strategies.
According to Forrester's latest research, a combination of factors will drive agencies to shift their focus, restructure their operations, and adapt business models in the coming years. The report highlights structural pressures experienced by agencies over the past decade, such as the replacement of retainer deals with project-based work, increased marketing insourcing, procurement pressures, and the introduction of artificial intelligence technologies.
The cumulative effects of these pressures are anticipated to force agencies to seek out new revenue streams and accept greater levels of business risk than in previous years. Forrester forecasts a marked transition where agencies will no longer function purely as client-focused partners but will become purveyors of a wider range of marketing products and services.
Consolidation and acquisitions
The research anticipates a series of major acquisitions within the agency holding company space. Specifically, Forrester predicts that at least one deal involving major players such as Dentsu or WPP could trigger multiple agency account reviews. The report notes Omnicom's recent acquisition of IPG as the beginning of this consolidation trend, and foresees at least one similar high-profile merger in 2026.
Forrester outlines two scenarios for the coming year: either Havas will acquire Dentsu's international operations, or WPP will restructure to enable a possible sale to private equity or a consultancy such as Accenture. Both outcomes are expected to prompt marketers to undertake comprehensive agency reviews as they reassess contracts spanning three to five years.
Business model changes
With heightened competition and profitability challenges, Forrester predicts that principal media trading will become increasingly mainstream. Agencies traditionally acted as agents for their clients, but there has been a notable trend towards reselling media inventory-with agencies acting as principals, assuming greater business risk but also the potential for increased returns.
The report projects that by 2026, principal media trading will account for approximately one third of all media under management. Recent activity, such as Omnicom's acquisition of IPG and Publicis' continued bundling of media with its data arm Epsilon (Conversant), exemplify this direction. WPP Media, meanwhile, is reportedly placing artificial intelligence at the heart of its media trading operations. This evolution marks a clear shift from the older agency-as-agent model.
Impact on workforce
The agency sector is expected to face further headcount reductions, accelerated by automation and artificial intelligence. Forrester's research suggests that lacklustre profits and weak forecasts from companies such as Dentsu, IPG, S4 Capital, and WPP led to average staff cuts of around 8% in 2025. In 2026, the report anticipates a further reduction of 15% in agency jobs, driven by the introduction of automation, the need for operational efficiencies, and redundancies as business models change.
Creator marketing's ascendance
The study also points to a growing influence of creator and influencer marketing on agency strategies. Whereas these activities were once primarily managed by media agencies-of-record, Forrester expects that creative and social agencies will take greater control as creators increasingly demand higher compensation, retain more control over their relationships with brands, and engage in long-term partnerships.
As creators assume more responsibility for the ideation and production of marketing content, agencies are expected to operate more as coordinators that connect technology with creative talent, rather than simply executing media buys.
"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."
