A Big Bang Reshapes Agencies Into Algorithms Of Record

The slow, reluctant agency evolution just exploded into the agency big bang. Shrinking margins from cost-cutting, competition from insourcing and consultancies, multiple client stakeholders, and tech-partner disintermediation pushed agencies to consolidate capabilities and include technology as part of their offerings. Agencies now race to keep up with the blistering pace of technology. Altogether, they’ve invested nearly $27 billion since 2015 to fuel this change.

Major Agency Acquisitions (2015–Present)

Purchaser
Acquired Company
Year
Value

Publicis Groupe
Sapient
2015
$3.5B

Accenture
Cloud Sherpas
2015
$350M

WPP
Essence
2015
Undisclosed

dentsu
Merkle
2016
$1.5B

Interpublic Group
Acxiom
2018
$2.3B

Publicis Groupe
Epsilon Data Management
2019
$4.4B

Accenture
Droga5
2019
$475M

Accenture
Infinity Works
2021
~$200M

Accenture
Greenfish
2022
Undisclosed

WPP
Design Bridge and Partners
2022
Undisclosed

dentsu
Tag Worldwide Holdings
2023
Undisclosed

Omnicom Group
Flywheel Digital
2024
$853M

Omnicom Group
Interpublic Group (IPG)
2024
$13.3B

WPP
InfoSum
2025
Undisclosed

Havas Group
Channel Bakers
2025
Undisclosed

Havas Group
Gauly Advisors
2025
Undisclosed

Agencies Experience A Big Bang

2025 has been volatile for holding companies in particular. AI disruption, economic uncertainty, and corporate efficiency initiatives further challenge their profitability. S4 Capital posted double-digit losses. dentsu, IPG, and WPP saw valuations plunge amid rumors of private equity acquisitions. Havas, Omnicom, and Stagwell reported low single-digit growth between 2.5% and 3.8%. Only Publicis Groupe stood out, delivering 5.7% growth in the most recent quarter.

The big six global agencies are becoming the big three: Omnicom Group, Publicis Groupe, and a WPP variant. And all operate as burning platforms for change. While agency options contract, remits expand. They no longer act solely as partners delivering client-centric services. They also operate as merchants reselling proprietary media and software, vendors executing projects, consultants implementing technology solutions, and affiliates contributing expertise to matrixed organizations. Put simply, your agency is no longer just an agency.

The Industry Realigns Around Media And Tech

Media and technology scale now form the foundation of agency strategy. Omnicom’s acquisition of IPG exemplifies this shift. The merger combines Omnicom Media Group, IPG Mediabrands, Acxiom’s proprietary data and technology, and Omni — Omnicom’s marketing OS — to deliver media clout and content velocity.

Omnicom is not alone. Publicis Groupe continues to expand technology capabilities, launching Leona, an AI-driven production engine. WPP introduced Open Intelligence, powered by InfoSum, and Open Pro, a self-serve version of its enterprise marketing OS. Havas and Horizon Media formed a joint venture to service global accounts with Horizon Global’s Blu and Converged.AI platforms. PE-backed Wpromote acquired creative agency Giant Spoon to bolster its content offering. And independent agency PMG launched the Alli marketplace to provide API access through its proprietary platform.

By 2026, the agency marketplace will operate on three dimensions:

Power: Media buying concentrates among fewer, larger players.
Precision: Media activation shifts from manual to agentic planning and buying.
Production: Audience intelligence drives asset creation and production.

Holding Companies Aim To Become The Algorithm Of Record

Marketers will no longer buy agency talent to produce concepts. They will buy algorithms that agency talent customizes to create, activate, and scale marketing. A new kind of “AOR” emerges from rapid capability expansion, software platforms, and consolidation. The agency of record becomes the algorithm of record, customizing instructions for how, when, and where to execute on behalf of a brand. The algorithm of record integrates the agency’s marketing OS, proprietary data, and client IP. It synthesizes objectives, audiences, and channel opportunities to produce a signature style of creativity unique to each brand.

While agency consolidation — such as Omnicom’s acquisition of IPG or the rumored sales of dentsu and WPP — dominates headlines, the real story is this upheaval. Can agencies expand without losing existing clients or new business opportunities? And can agencies — large and small — deliver services as a software and an algorithm-of-record proposition? The answers to these questions will determine marketers’ choices in 2026 and beyond.

If you’re a Forrester client and would like to further discuss these implications, please schedule a guidance session with me, and be on the lookout for my upcoming report in 2026 examining the shift from agency service providers to marketing solution purveyors.