How Media Agency Strategy Is Evolving: AI, Tariffs, and the Push for Flexibility

Close-up of a metal caliper measuring a rolled $100 bill, symbolizing precision in budgeting and performance measurement — reflecting how modern media agency strategy focuses on flexibility, efficiency, and ROI in an evolving economy.

As client budgets tighten and global uncertainty continues to shape the advertising landscape, media agencies are rethinking how they plan, invest, and communicate value. The Digiday Media Agency Report 2025 paints a detailed picture of how economic shifts, evolving technology, and client expectations are reshaping media agency strategy across the industry.

Navigating Economic Uncertainty

Nearly half of agencies (45%) reported client budget decreases in 2025 due to tariffs, inflation, and consumer uncertainty. Rather than retreating, advertisers are adapting. Growth remains stable in travel, tech, and pharma, while performance-driven categories are shifting spend more dynamically. This real-time agility has become a cornerstone of modern media agency strategy, forcing agencies to think like financial strategists — balancing risk, timing, and opportunity.

Looking Ahead to 2027

While 2026 spending projections remain cautious, most agency leaders expect a rebound by 2027. Mile Marker CEO Scott Shamberg noted that clients are already planning for longer growth cycles: “We’re hearing clients say, ‘Next year might be flat, but the following year will be big.’” This forward-looking optimism reflects a belief that once macroeconomic pressures ease, brands will re-invest aggressively in growth channels.

Flexibility Defines Media Agency Strategy

Budget flexibility has emerged as the new marker of partnership strength. “What I’m hearing from clients,” said Shamberg, “is how much flexibility we can build into commitments.” In uncertain times, adaptability equals resilience. Digital channels — particularly CTV, retail media, and paid social — continue to dominate, with 72% of agencies expecting increased CTV investment in 2026.

Streaming, Retail Media, and the Rise of AI

Lower CPMs on major streaming platforms and growing overlap between CTV and retail media are driving measurable performance. As Shamberg observed, “There’s more education on the part of brands for CTV — not just from an inventory perspective, but from measurement and technology.”

Meanwhile, agentic AI — autonomous AI systems capable of executing marketing tasks — remains in early adoption. While most clients don’t yet grasp its full potential, nearly half of agencies plan to experiment with AI integrations in the next year.

The Takeaway

The strongest media agency strategies are rooted in transparency, flexibility, and experimentation. As AI matures and digital ecosystems evolve, the agencies that can anticipate change — and adapt with precision — will lead the next wave of growth in media investment.

 

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Explore how AI, CTV, and shifting client priorities are redefining the future of media strategy.
👉 Read the full report on Digiday. 

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