How agencies adapt to AI and creators in a shifting media landscape

New research from Modern Retail+ examines how advertising agencies are adjusting to a media landscape increasingly shaped by artificial intelligence and creator-driven content. The study notes changes in client spending, services offered, and how agencies plan media buys as AI tools and creator partnerships become more common.

What changed in advertising landscapes

The report highlights two evolving forces: AI-enabled search and the rise of creator-led content. Agencies report that these factors influence where brands spend money and how they evaluate success. AI search can alter how audiences discover brands, potentially shifting budgets toward search-oriented and data-driven strategies. Creator partnerships are increasingly used to build community and trust, rather than relying solely on traditional ads. These shifts create new service opportunities for agencies but also raise questions about costs, capabilities, and long-term planning.

Key findings for brands and agencies

1) Clients are turning to creators to foster community and authenticity in brands’ messages. 2) Agencies seek to monetize AI tools, while costs for these tools can rise. 3) AI-driven search changes how media budgets are allocated, affecting search and related channels. 4) The report suggests an evolving service mix as agencies adapt offerings around AI, creator partnerships, and data analytics.

Who is affected

The changes touch brands seeking to reach consumers, especially those using or considering AI-enabled optimization and creator collaborations. Agencies working with multiple clients across sectors may adjust teams and services to incorporate AI capabilities and creator partnerships. The study focuses on the advertising ecosystem rather than on specific consumer groups, so individual impacts depend on each brand’s strategy and budget.

Practical next steps for busy teams

For marketers and agency teams: (1) Evaluate current use of AI tools for search and audience insights, ensuring transparency in how AI suggests placements and measuring outcomes. (2) Explore creator partnerships with clear guidelines on brand safety, messaging, and compensation to align with business goals. (3) Reassess media budgets with an eye toward AI-enabled optimization and potential shifts toward data-driven channels. (4) Build a plan for upskilling teams to manage AI tools and creator collaborations. (5) Maintain a guardrail on costs by piloting new technologies with small budgets before broader deployment.

Limits and questions to consider

AI tools and creator strategies introduce new dependencies and cost considerations. It is important to ask: Are AI recommendations explainable and auditable? How will creator partnerships be measured for impact and brand safety? What are the long-term budget implications of adopting AI and creators across campaigns? The report points to ongoing experimentation as brands and agencies balance opportunity with costs and capability constraints.

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