Advertising Professionals Believe Traditional Agency Model is Broken or Will Be Within 3-5 Years

Basis 2026 Advertising Agency Report Illustrates How AI, Transparency, Process and Other Factors are Converging to Make Work More Difficult for Advertising Professionals

Chicago, IL - April 20, 2026 - Basis (https://basis.com), the leading intelligent operating system for autonomous advertising, today announced survey results showing that 87% of agency professionals believe the traditional agency model is either broken or will be within 3-5 years. The sentiment is even stronger among senior leaders, with 92% of agency decision-makers believing this to be the case. The Basis 2026 Advertising Agency Report is an annual study of 200+ advertising professional respondents that reveals an industry under intensifying strain and rapid evolution, with AI playing a significant role. Download the full report at: https://basis.com/reports/2026-advertising-agency-report.

"Basis' 2026 Advertising Agency Report illustrates an industry in flux, where operational complexity, economic pressure, and AI-driven disruption are forcing agencies to rethink how they work, how they deliver value, and how they are compensated," said Ryan Manchee, SVP of Brand Marketing at Basis. "As the agency model transforms, the question now is what tools, technologies and practices these businesses will use to refit and remodel. While AI can be a business accelerator and force multiplier for agencies, it is only effective if it operates on advertising systems that are structured and connected."

The report finds that while AI adoption across agencies has surpassed 99%, the technology's rapid rise is colliding with entrenched inefficiencies, tightening margins, and a traditional agency model that may not be sustainable in a few years. Additional findings from the report include:

Agencies' work is getting harder

• 70% of agency professionals say their jobs are more difficult today than they were two years ago.
• 54% say client relationships are more strained, driven by higher expectations, compressed timelines, and increased scrutiny.

Significant operational inefficiencies

• Inefficient processes (44%) and siloed or disconnected systems (40%) remain agencies' top challenges.
• More than one-third of agencies now manage 10 or more tools, more than double the share reported just two years ago

AI is a lifeline… and threat

• Nearly 60% of agency professionals now use AI daily, up from just 16% in 2024.
• 90% believe AI threatens their agency's primary revenue streams, accelerating client in-housing and reshaping expectations around speed and cost.

Workforce confidence is dipping

• For the first time since Basis began tracking industry sentiment, fewer than half of agency professionals feel optimistic about the future of digital advertising.
• Nearly 40% of agencies have conducted layoffs in the past year.

The agencies best positioned to succeed will identify solutions for the challenges outlined in the report, which can be vaulted by streamlining operations, consolidating fragmented tech stacks, rethinking revenue models, and investing in AI-ready infrastructure that delivers efficiency, transparency, and measurable outcomes as a baseline expectation.

About Basis

Basis is solving the advertising industry's biggest problems with a foundational software platform that connects every channel, every workflow, and every financial system into one governed operating system. With AI-driven media planning and management capabilities, Basis is a unified command center for agencies and brands. It creates capacity for media teams through integrated applications specialized in planning, operations, reporting, and financial reconciliation across programmatic, publisher-direct, search, and social channels. Basis empowers leaders with AI-powered efficiency and productivity -- driving financial success for their organizations. Renowned for its dedication to both employees and customers, Basis creates more seamless operations and fosters a happier, more engaged workforce. Learn more at https://basis.com.

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