Overheard by Media Agency Report: How Assembly IPG Horizon and others will use AI in 2026 and how much they will spend on advertising

This analysis is based on exclusive data gathered from a select group of publishers, agencies, brands, and technology insiders. Access to the full dataset is available to Digiday+ members. This article offers an insider’s perspective on the evolving landscape of media agencies, focusing on client budgets, media channel allocations, and the growing influence of agentic artificial intelligence (AI).

To deepen our understanding, Digiday convened a focus group comprising seven senior executives from both holding company-owned and independent media agencies. These leaders oversee significant media investments and shared firsthand insights on client spending trends and AI adoption. Participating agencies included:

• Assembly Global
• Horizon Next
• IPG Mediabrands
• Mediahub
• Mile Marker
• Novus
• PMG

Economic Indicators and Global Sporting Events Shaping 2026 Budgets

Drew Corry, SVP of Strategic Investment and Market Strategy at IPG Mediabrands, highlights the impact of major international events on media spending: “Historically, global events like the Olympics and World Cup significantly boost investment levels. Without these, growth would appear more moderate. However, uncertainties remain, especially regarding tariffs affecting key economies. While both consumers and businesses have maintained spending momentum, the sustainability of this trend in the latter half of the year is still unclear.”

Mike O’Connor, EVP and Head of Investment at Horizon Next, echoes this optimism: “Early indicators suggest that 2026’s media market will outperform 2025. The combined effect of the Olympics and World Cup is driving a more positive outlook, making the upcoming year seem brighter.”

Andrea Montano, EVP of Strategy, Insights, and Connections at Assembly Global, adds an economic perspective: “As of August 2025, U.S. GDP projections estimate a growth rate near 2%, which is modest but promising. The outlook varies depending on whether clients operate regionally or globally. With global GDP forecasts strengthening, we’re cautiously optimistic about increased media budgets, especially if the U.S. economy maintains this trajectory.”

Integrating AI to Enhance Agency Efficiency and Client Outcomes

Scott Shamberg, President and CEO of Mile Marker, shares his personal experience with AI: “AI tools have expanded my capacity to manage tasks more effectively. We approach AI adoption from two angles: supporting our team’s daily work and leveraging AI for high-impact projects. The goal is to automate repetitive tasks and amplify our strategic capabilities. AI is becoming integral to nearly every decision we make, both internally and for our clients.”

Andrea Montano further explains the strategic alignment required: “Clients frequently inquire about developing AI roadmaps. Success depends on aligning agency objectives with client culture and AI commitment. We believe our success is intertwined with our clients’ AI adoption. Harnessing AI’s full potential unlocks efficiencies and drives a shift toward outcome-based compensation models. It’s no longer about headcount but about making faster, smarter decisions that deliver measurable results. AI will also transform how we negotiate commercial agreements, benefiting both agencies and clients.”

Rob Davis, President and CMO of Novus, highlights client-specific AI challenges: “Two critical questions arise: where and how AI is applied. Agencies must demonstrate how AI reduces costs by saving time and energy, and how it enhances intelligence. Recently, a client reported a 30% drop in site traffic, attributing it to AI-driven changes in search algorithms. The impact varies widely by client and industry, making AI a hot topic across the board.”

Additional Insights on Media Buying Trends

As media agencies navigate the evolving digital landscape, understanding the interplay between economic factors, global events, and AI integration is crucial for forecasting client spending and optimizing media strategies in 2026 and beyond.