Forrester: Wave of agency reviews, consolidation predicted for 2026

By 2026, agencies will evolve from client-focused partners into marketing purveyors reshaped by automation, consolidation and creator-led strategies due to mounting marketplace disruption.

This shift, according to Forrester's 2026 Marketing Agencies Predictions, is fueled by a decade of structural pressures, ranging from the shift to project-based work and increased marketing insourcing to procurement demands, industry consolidation and AI disruption - pushing agencies to explore new revenue streams and take on greater business risk.

As a result, agencies will resign their agency in terms of their ability to exclusively represent clients’ needs as well as their autonomy to shape their destinies as individual operating companies.

As agencies undergo a fundamental transformation, they will diversify their offerings and expand their roles, moving beyond traditional services to sell execution, managed services, proprietary products and strategic partnerships, according to the report.

Restructuring and consolidation will drive reductions in headcount and limit agency autonomy. At the same time, shifts in media ownership, the acceleration of AI, ongoing M&A activity, and the growing influence of the creator economy are poised to redefine the agency model. No longer just executors of client strategy, agencies will increasingly emerge as comprehensive providers of end-to-end marketing solutions.

In light of this, Forrester laid out its predictions on evolved marketing agency relationship in 2026. 

Agencies prepare for change

As we approach 2026, the industry is bracing for another wave of high-profile holding company deals, potentially including a blockbuster acquisition involving dentsu. Despite its newly announced partnership with Horizon Media, Forrester predicts that Havas may acquire parts of dentsu’s international operations.

Another possible scenario is that WPP may restructure in preparation for a future sale to private equity or a consultancy giant such as Accenture. Either outcome would prompt marketers to reassess long-term agency relationships.

The report hits that 85% of US-based B2C marketing executives plan to review their media agency contracts in 2026. For context, six major brands conducted media reviews in 2021, while 20 did so in 2023.

For CMOs eyeing a 2026 agency review, the first step will be to evaluate which agency operating model best aligns with their strategic priorities and budget realities.

Media under the microscope

Reselling media inventory with a margin and guarantees will go mainstream in the new year. 81% of US B2C marketing executives plan to increase principal media investments to gain cost efficiency and value in 2026 and Forrester predicts that principal media will grow to nearly 33% of total agency billings.

Omnicom’s acquisition of IPG expands its principal opportunities. Publicis Groupe’s bundling of media plus Epsilon (Conversant) isn’t slowing. WPP Media places AI at the heart of its media trading. However, trading as principal marks a departure from trading as agent. Critics cite lack of transparency and abdication of brand stewardship, but supporters maintain that discounts and guarantees with disclosure make principal media an option during volatile times.

CMOs asking agencies to take on more risk in 2026 should expect different media-buying methods and must select providers that convert buying power into buying intelligence.

Reduncancy on the horizon

Lackluster profits and anemic guidance from dentsu, IPG, S4Capital and WPP led to headcount reductions of some 8% in 2025. In 2026, automation and AI will reduce headcount even further. Forrester initially forecasted that automation and genAI would eliminate 7.5% of US agency jobs by 2030. It now predicts that 15% of agency jobs will be eliminated in 2026 due to automation, redundancies and efficiency.

Agencies will pull back from selling services and expedite selling solutions, another move away from “agency.” CMOs looking to maximise their agency resources should renegotiate contracts to reflect the solutions that agencies provide, not just the delivery time required.

Private equity on the hunt

Private equity is set to reshape the creative agency landscape. Forrester reports that nearly 80% of the top 80 digital media agencies have received private equity or venture capital investment. In 2026, PE firms will double down on data-driven creative shops to enhance their existing portfolios in digital media.

“Private equity firms are drawn to companies with recurring revenue and predictable cash flow, characteristics that initially attracted investors such as Mountaingate Capital to performance marketing agencies such as Tinuiti,” Michael Seidler, founder and CEO of M&A advisory firm Madison Alley, said.

Early signs of this trend are already visible. Truelink Capital’s acquisition of R/GA, followed by its purchase of Addition and AEA Investors’ acquisition of Huge and Hero Digital. More deals are expected in 2026, targeting growth for firms such as Brainlabs, MSQ and Wpromote.

This influx of private equity–backed players represents an expanded field of options, but also a strategic decision point for CMOs. The challenge will be balancing the need for scale in media and content with the precision and agility demanded by modern marketing.

Creator economy matures

It will come as no surprise that they creator economy is maturing. With influencers increasingly acting as entrepreneurs and seeking greater control, higher compensation and long-term brand partnerships. As creator demands grow more sophisticated, the need for deeper integration with brand and creative strategy becomes essential. By 2026, the center of gravity for creator marketing within agencies will shift from media agencies of record to creative and social agencies.

According to Quartermast Advisors, 52 deals involving creator and influencer companies closed in the first half of 2025. Notably, 27% of these deals involved influencer management firms and agencies - surpassing deals in influencer tech (26%) and media properties (19%). As creators take on larger roles in ideation and production, creative agencies will increasingly act as orchestrators—connecting brands with the right creators and tech platforms.

To scale creator marketing effectively, CMOs should broaden the mix of creator types and distribution platforms, while establishing a clear strategy to align creators, campaigns, and agency partners under a unified brand vision.

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