Advertising & PR Agencies NAICS 541810, 541820

Jul 29, 2025 - Advertising Industry Shedding Jobs Due to AI

• Non-management jobs at US advertising agencies have declined 10% since the beginning of 2022, according to Live Data Technology, as the industry grapples with significant change brought on by AI adoption. Entry-level jobs are the hardest hit, as most of those creative tasks have largely been taken over by AI in what is an industry-wide shift to technology. Executive and director-level roles, however, have remained stable. Mentions of AI in global job listings for advertising and marketing companies increased 67% year over year, according to Autodesk. The trend has opened the door for independent ad shops and those backed by private equity to boost hiring to compensate and compete. Overall advertising industry employment is stuck in pre-pandemic levels at about 220,000 jobs - agencies are down 4% year over year in employment, well below its high of 280,000 roles in 2023.
• British banking giant Barclays downgraded the stocks of three ad industry giants, stating that low demand will persist as advertising undergoes a fundamental shift due to AI. Barclays said they ultimately expect the ad industry to adapt and do well in the long run, but it will take time. The heavy lifting of creative ad work can increasingly be done with AI by advertisers themselves, causing some to question the need for an agency at all. And the industry’s traditional method of billing by the hour could be in flux given that AI has cut down the time it takes to create a campaign. Social networks like Meta are using AI to automate its entire ad creation business, a trend Barclays dismisses as a threat due to its focus on small businesses. Still, ad agencies will need to use AI as a supplement and prove to clients they can’t be easily replaced with computers.

• Advertisers trying to find ways around consumers paying streamers to skip commercials have settled on boosting product placement within Hollywood productions themselves, often coming on board before a film or television production has even started filming. Streamers making expensive movies like “F1: The Movie” from Apple and “Happy Gilmore 2” on Netflix have begun to offset hundreds of millions in production costs with marketing deals that can be both lucrative and controversial. The marketer risks a movie bombing at the box office or being ignored on streaming, while content companies risk being accused of making big-budget commercials rather than a production that can stand on its own, as well as adding another layer of executives with possible creative control. Netflix even has its own integrated marketing team to draw advertisers into their productions, while marketing startups have entered the picture to help brands navigate entertainment product placement.
• Total US spending on advertising is expected to grow 4.5% in 2025, according to an S&P Global forecast, as consumers continue to spend despite growing fears about the state of the economy. The industry is expected to continue its shift towards digital advertising and away from legacy media (TV, radio, print). S&P expects digital advertising will expand by 9.1% this year, a slowdown from the 13.8% expansion in 2024 as the relatively new market normalizes. Digital ad growth is the fastest growing advertising segment as consumers shift away from traditional TV in favor of streaming and the technology offers detailed demographic user info to better target potential customers. National television advertising is expected to drop 8.9% in 2025 without the benefit of political ads or the Olympics as in 2024.