Digiday+ Research: Agencies punt budget growth expectations to 2027 — while AI worries intensify

Between the war in the Middle East’s potential impact on ad spending and the rapid integration of AI tools across workflows, agencies have a lot on their minds in 2026.

Overall, agencies’ top concerns this year are client spending and the effects of AI. Thirty-eight percent of agency professionals anticipated that the biggest challenge the agency industry will face in 2026 is reduced client budgets, while 38% said the same about the effects of AI. That’s according to a Digiday+ Research survey conducted in the fourth quarter of 2025 among 62 agency professionals.

This continued the trend of spending pessimism from 2025: Forty-seven percent of agency pros said reduced client budgets was agencies’ top concern last year, ahead of other roadblocks such as scope creep (16%) and the external effects of AI (11%).

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Author: Catherine Wolf

Search & Affiliate Marketing Strategist since 1993