Agencies in 2026: reviews, job cuts and principal media

Three changes are hitting agency relationships in the same year. Here is what each means for the brand, and what to check before the next contract renews.

Brands are dealing with three agency changes at once: a wave of reviews, deep staff cuts at the holding companies, and more media bought on a principal basis. Each is manageable on its own. Together they mean the agency you hired two years ago may not be the agency you have today, and the contract probably hasn't caught up.

Why are so many brands reviewing?

Forrester predicted that 85% of US B2C marketing executives would review their media agencies in 2026. Consolidation is a big part of it. Omnicom's acquisition of IPG, WPP's restructuring and dentsu's plans for its international business made many marketers wait for clarity before moving, and Digiday reported Omnicom preparing for an unusually busy pitch season as a result.

A review is a large project, and it isn't always the right first step. Often the better question is whether the current relationship is working, and what it would take to fix it. Our notes on what has changed in media agency reviews and how to run one in eight weeks cover the review route.

What do the job cuts mean for your account?

Forrester forecast a 15% reduction in agency jobs in 2026, after an average cut of 8% in 2025. Fewer people across a network doesn't automatically mean fewer people on your business. But it is the right moment to compare who works on your account now with who was promised in the pitch, and to check whether the fee changed when the team did. We looked at the contract side in what to check in your agency contract.

Why does principal media matter to the brand?

Under principal media, the agency buys inventory itself and resells it to clients at a margin. Forrester expected it to reach nearly a third of agency billings in 2026. WPP's media chief told Digiday that principal trading is an established and growing part of the business, and that clients increasingly want to see how much of their spend runs through it, with contract protections to match.

Principal buying isn't wrong, and it can lower prices. But the brand should know how much of its plan is bought that way, at what margin, and with what right to opt out. Our principal media disclosure clause sets out the wording.

What should change in the contract?

Forrester's advice to CMOs is to pay agencies for the solutions they deliver rather than the time they spend, through outcome-based, fixed-fee or product-based models. That is a good direction. Before you get there, put three basics in place:

• A named team with seniority levels, and a fee adjustment if the team changes.
• Disclosure of principal-based buying, with an opt-in or opt-out.
• Audit rights that cover platform, data and agency fees.

Where to start

Check the relationship before you replace it. An Agency Health Check compares fees with scope and the team you have with the team you were sold. A Media Audit goes deeper into what the working media costs. The marketing practice page covers both.

Sources: Forrester, Predictions 2026: Marketing Agencies Resign Their Agency, October 2025, Digiday, Omnicom execs begin their pitch outreach, December 2025, Digiday, Rising demand for principal media buying underpins WPP's turnaround plan, February 2026.