Opportunity or threat? Indie agencies can't decide what AI is

Six in 10 Australian independent media agencies are forecasting flat or stronger advertising expenditure in the next financial year, according to the Independent Media Agencies Australia (IMAA)'s 2026 Indie Census, released on 24 June 2026.

The annual census - drawn from 157 independent media agencies across the country - found that 61% of IMAA members expect ad spend to hold or grow in FY27, with 30% predicting increases of up to 10% or more.

The results track alongside year-on-year billing growth, with 70% of member agencies now billing above $11 million annually in FY26, up from 61% in FY25.

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Channels to watch

Podcasts, BVOD/CTV, and programmatic out-of-home headline the channels flagged for the strongest growth, with up to 25% expansion anticipated.

Seven in 10 agencies expect podcast investment to grow by up to 25%, while 60% hold the same view for BVOD/CTV and programmatic out-of-home.

Digital radio and traditional out-of-home are also seeing renewed momentum, with more than half of respondents expecting both to grow at a similar rate in the coming year.

Digital display, social, and search continue to command the largest share of current spend, followed by out-of-home, BVOD/CTV, and audio. Nearly 92% of agencies rated platform measurement and linking media spend to business outcomes as very or somewhat important.

AI: The double-edged opportunity

Artificial intelligence emerged as the defining tension in this year's census - simultaneously the sector's largest growth opportunity and its most pressing challenge.

AI-assisted creative and media optimisation was identified as the biggest incremental growth opportunity heading into FY27. Yet more than a third of agencies (33.9%) nominated adopting and integrating AI and generative AI into workflows as their biggest near-term challenge.

Data privacy and compliance concerns topped the list of barriers to broader AI adoption in media planning and buying, alongside a lack of skilled talent or internal expertise and unclear or unproven ROI.

Upper-funnel brand building (25%) and short-form video (15%) were also flagged as key growth areas, while proving media effectiveness and ROI to clients - and navigating an increasingly complex media landscape - were cited as critical ongoing challenges.

Talent pipeline remains a priority

Despite broader industry consolidation and job cuts, independent agencies remain active recruiters. Close to 40% of respondents are seeking candidates with up to three years' experience, with a similar number targeting three to seven years.

Communication, client management, and critical thinking were identified as the most significant capability gaps in early media careers.

IMAA CEO Sam Buchanan said the census reflects an industry that is resilient despite wider economic and structural headwinds.

Sam Buchanan

"The census shows a dynamic independent media agency sector, underpinned by solid growth and optimism about the next financial year," Buchanan said.

"Despite the ongoing cost-of-living crisis, local and global uncertainty and significant agency consolidation and job cuts in the broader advertising industry, our members remain positive about what's to come in the next 12 months."

Buchanan said the growth in billing among members reflects a broader shift in client behaviour.

"It's incredible to see that nearly 70% of our members are now billing more than $11 million annually, which is demonstrative of the significant and growing appetite by clients for indie agencies nationally."

He added that supporting members through the AI transition would be a priority for the IMAA in the coming year.

"This year, we'll be doubling down on our efforts to support our members as they navigate the AI transition and its impact on everything from day-to-day operations to planning and buying."

Main image: Image by DC Studio on Magnific

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