The advertising industry job market ended 2025 in a slump as the market’s largest employers cut jobs. Employment in the U.S. advertising industry fell by 3,700 compared to the previous year, according to the latest statistics from the U.S. Bureau of Labor Statistics.
Advertising agencies are still hiring, but the skills they hire and where they find them are starting to change.
Unsurprisingly, generative AI tools are the motivator.
“Technological literacy is critical at this time, and AI fluency is expected,” said Javier Santana, chief strategy officer at general services agency Chemistry. “There’s no room for purists.”
“Agencies are being forced to move away from one-dimensional, qualification-based hiring,” added Chief Human Resources Officer Christopher Peterson.
Of PMG’s 190 positions in 2025, 80 were “early career” positions. Chief Human Resources Officer Stacey Martin told Digiday the agency plans to hire a similar number in 2026, with 10 to 15 positions expected to be filled in January. Sarah Smith, senior director of talent enablement, said the company focused on recruiting for jobs related to software development, engineering and AI automation.
General agency Kramer Krasselt hired 25 staff in 2025, according to human resources director Alexa Bazanos. “What we are employing is [the] It’s the experience, ability and curiosity to leverage AI in your work,” she said.
As part of a broader reshuffling of skills prioritized by employers, AI is now a key focus for job interviews. According to research published by LinkedIn in January, 70% of workplace skills are expected to change by 2030. The same study found that 88% of executives believe accelerating the adoption of AI within their organizations is a priority.
Bazanos said applicants will be required to answer questions about solid use cases that demonstrate their expertise and knowledge of AI.
However, almost as important as familiarity with AI tools is the judgment required to use them.
“Even in non-technical media roles, they’re doing vibecoding. They’re using AI to prototype and automate solutions. It’s not about knowing how to write perfect code; it’s about what it looks like,” Smith says.
“[AI] “I would argue that soft skills, such as creative thinking, critical thinking, problem solving, and conflict management, are by no means ‘soft,’ but they do force organizations to prioritize,” Peterson said.
As the skills agencies look for in early career roles change, so too will where they look for talent.
Martin said authorities still consider applicants from schools with traditional portfolios, but are leaning more towards universities with dedicated AI modules for their courses. Martin said the University of Texas is one such institution (PMG has offices in Dallas and Austin).
“We are now relying more on schools. [that] We’re thinking more forward-thinking than just teaching people how things have been done in the past,” Smith added.
This is not to say that AI sidelines previously vetted skills agencies. Smith said it was a “red flag” for applicants to rely too much on AI tools during interviews. “At the end of some of these, [interviews]…All they were doing was using AI. They didn’t bring perspective,” she said.
If the economy moderates over the next 12 months, the Adland job market could recover in turn. But employers across the advertising industry know they can get by with smaller teams thanks to economies of scale enabled by AI and automation.
As employers reconsider investing in developing early-career talent, applicants may rightly worry that the same impulse will dry up junior positions first. According to a December survey by headhunting firm Spencer Stewart, 36% of CMOs expect their headcount to decline over the next 12 to 24 months, due in particular to AI technology.
“AI has not impacted the number of positions we fill at the junior level,” Bazanos says. However, that doesn’t necessarily mean that an agency’s demand for junior talent will remain stable forever. “I think we’re going to see more of that happen in the next few years,” Bazanos said.
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