Generative AI seen as threat to agency value

Contagious has released its Radar 2026 report, outlining the cultural and technological trends expected to shape marketing strategies over the coming year, alongside growing concerns about the long-term viability of the current industry model.

The report finds that 67 percent of C-suite marketing and agency leaders believe the existing advertising model may last no more than five years, while perceptions that generative AI is devaluing agencies have more than doubled year on year.

Industry outlook reflects uncertainty

Based on a survey of 100 senior marketing and agency leaders, the report positions 2026 as a period of adjustment, with leaders balancing optimism about present opportunities against uncertainty about the future.

Katrina Stirton Dodd, Trends Editor, Contagious: "Welcome to the Cold War of AI. 2026 marks the delicate balance of automation – a race driven by efficiency but shadowed by existential unease. That unease seeps through the six trends explored in this year’s Radar, spanning our enduring appetite for meaning, comfort, connection and protection. Running through them all is a clear, human through-line: the longing for a little more control, a little more agency in the face of relentless uncertainty."

The findings highlight a shift in sentiment, with more respondents indicating that the industry’s strongest period may be happening now rather than in the future.

Content overload reshapes engagement

Platforms such as Netflix, YouTube and TikTok continue to expand the volume of available content, contributing to what the report describes as an “attention sink”.

This environment is driving demand for shorter, more efficient content formats, while also encouraging brands to prioritise quality over quantity to maintain meaningful engagement.

Nostalgia and connection influence strategy

The report identifies nostalgia as an enduring influence on brand strategy, with companies drawing on past cultural references to build emotional connections. However, it cautions that relying solely on historical cues without reinterpretation may limit creative impact.

At the same time, concerns about social disconnection are shaping marketing approaches, as brands explore ways to encourage real-world interaction and community-building experiences.

Rethinking social and wellbeing

Debate around social media is shifting towards user wellbeing and regulation, with increased scrutiny on platforms’ impact on younger audiences. The report points to growing support for stricter controls and a reassessment of media investment strategies.

As a result, brands are exploring alternative environments, including podcasts and more regulated channels, to balance reach with responsibility.

Changing definitions of aspiration

The report also highlights a shift in how consumers view success and self-improvement. Trends in beauty, lifestyle and career expectations indicate a move away from traditional aspirational goals towards more immediate and attainable experiences.

Brands such as IKEA and ASICS are adjusting messaging to reflect this shift, focusing on present-day value rather than long-term ambition.

AI and agency value under scrutiny

Generative AI continues to influence perceptions of agency value, with 28 percent of clients now believing the technology diminishes agency contributions, compared with 11 percent in 2025.

Despite this, most respondents report regular use of AI tools, reinforcing the technology’s growing role in campaign development and execution.

Katrina Stirton Dodd: "The Contagious Radar 2026 report underscores the importance of adaptability and creativity in navigating a rapidly changing cultural and marketing landscape. As aspiration evolves and attention fragments, brands must recalibrate their strategies to resonate with consumers seeking meaning, comfort, and connection in uncertain times."