Advertising Age presented content titled, “3 misconceptions fueling pessimism about ad agencies—and signals that they’re overblown.”
Okay, except the article is based on a report published by an advisory and consulting firm’s industry analyst whose CV includes stints as a senior executive at IPG and WPP.
Given that IPG was erased and WPP is a flaming dumpster, what is the value of perspectives from a White man who toiled at such places?
In Adland, those who can, do; those who can’t, analyze for consultancies.
3 misconceptions fueling pessimism about ad agencies—and signals that they’re overblown
By Ewan Larkin
Ad agencies have taken a beating in perception, battered by AI anxiety, restructurings and a string of layoffs. In a report published today, Brian Wieser, principal at advisory and consulting firm Madison and Wall, argues the sector is being misread.
The prevailing narrative that automation, in-housing and client cutbacks are slowly hollowing out the agency business is largely a story about a handful of struggling public companies, not the industry as a whole, Wieser said. His analysis, which draws on a new data set covering 17 publicly traded agency groups and hundreds of independent, privately held companies, claims that the industry is more profitable and durable than many believe.
Ad Age dives into Wieser’s key takeaways below.
The agency sector is growing, just not like it used to
The struggles of agency holding companies including WPP and Dentsu have shaped what Wieser sees as a misinterpretation of the U.S. industry’s health. Revenue at private independents—which account for roughly two-thirds of the U.S. agency business—grew about 2% in 2025, compared to just 0.5% growth across all publicly listed agencies, Wieser wrote.
“Many people conflate public companies as being the industry,” Wieser said in an interview.
Excluding political agencies, which skew industry data in election years, Wieser forecasts roughly 2% revenue growth annually through 2030, compared to approximately 1.5% growth in 2025. While that’s up, it’s also a deceleration from the 4% to 6% growth the industry enjoyed in the pre-pandemic years, which Wieser acknowledges is unlikely to return.
AI isn’t gutting the agency business, at least not yet
The inexorable rise of generative AI has prompted long-term concerns about ad agencies, putting pressure on the shares of the industry’s biggest players. Agency holding companies have attempted to quell the damage: Stagwell ramped up its share buyback program to signal confidence in its growth, while Publicis Groupe Chairman and CEO Arthur Sadoun drew a sharp distinction between his company and rivals, which he accused of squeezing margins to please Wall Street.
Wieser sees the anxiety around AI as overblown, at least in the short term. A Madison and Wall report published in March, based on direct conversations with senior technology and strategy leadership at most of the largest agency groups, found that clients are not cutting budgets in response to AI, but asking for more. “The tools are real. The investment is real. The financial impact, so far, is not,” Wieser wrote in the March report.
That agencies’ financial trajectories have arguably improved in 2026 rather than worsened, Wieser added in today’s report, only amplifies that point. There may come a time when AI’s financial impact on agencies becomes material, “but we’re still a long way away from that world,” he added. For now, he argued, agencies have adapted, deploying AI tools while leaning on what machines cannot yet replicate, the human judgment and knowledge required to sell ideas.
In-housing isn’t displacing agencies
Marketers have been building in-house agencies for decades; the share with internal capabilities nearly doubled from 42% to 82% between 2008 and 2023, according to the Association of National Advertisers.
Wieser, however, argues that the ANA’s figure obscures what’s actually happening: his own analysis of the trade group’s data suggests those marketers account for only around 10% of total agency-related work, despite years of in-housing efforts. “Lost revenues from in-sourcing have likely been offset by growing revenue streams from emerging marketers who historically performed all marketing in-house (as most companies do from their earliest stages),” he wrote.












