Media agencies reshape workforce as automation and new models redefine roles

Australia’s media agencies are reducing headcount while increasing hiring in key roles, as new operating models reshape how work gets done.

The latest MFA Media Communication Industry Census shows total agency headcount fell 5.1% to 4,411 in 2025, down from 4,650 the year prior. However, with around 350 roles currently being recruited, the workforce would rise to 4,761 once filled.

At the same time, vacancy rates have climbed to 7.8%, up from 4.9%, pointing to a shift in hiring priorities rather than a broad pullback.

More than three quarters of open roles sit in activation, implementation and client service, reflecting continued demand for delivery-focused talent.

The data also shows a clear shift in workforce structure. Activation roles grew 19.8%, while client service, SEO and support functions including research, admin and finance declined, as agencies consolidate roles and automate lower-value tasks.

The changes come as agencies respond to a softer advertising market, with headcount broadly tracking declines in ad spend. Job cuts were concentrated in Sydney and Brisbane, partially offset by growth in Melbourne.

At the same time, the industry is becoming more specialised. Agencies are hiring more experienced talent, with 22% of new recruits aged 27 or older, up from 15% previously, reflecting the increasing complexity of media and data-driven work.

However, the census also points to a potential talent pipeline challenge. Entry-level hiring remains flat, while the proportion of people leaving the media agency sector has risen to 18.3%, up from 16.1%.

Average tenure has increased to 4.1 years, suggesting greater stability among those who remain, while gender pay parity has improved, with the gap narrowing to 1.4%.

MFA chair and WPP Media ANZ CEO Aimee Buchanan said the findings reflect an industry actively reshaping itself.

"The shifts we’re seeing in workforce structure reflects an industry that is actively adapting, not reacting to new realities," Buchanan said. "As technology, automation and AI accelerate, our opportunity is to keep shaping the future of our industry with intention.”

MFA CEO Sophie Madden added that the data highlights both progress and emerging risks.

“The Census highlights an industry in transition, with clear consolidation and a tightening of structures focused on delivery expertise,” Madden said.

"In tougher trading environments, agencies are demonstrating real adaptability while continuing to invest in the capabilities that matter most."