The full force of the storm that the agency market is facing has been laid bare as AI reshapes the sector, with headcount down, churn up and a steep fall in entry-level roles although at least progress is continuing in gender and ethnic representation across the industry.
That is according to the IPA Agency Census 2025, now in its 66th year, which was taken on September 1 2025 and reveals IPA member agencies employed 24,963 people, representing a 6.8% decrease from 26,787 in 2024.
This reduction was driven by a considerable contraction in creative and other non-media agencies, where employment fell by 14.3% from 14,775 to 12,659. By contrast, employment in media agencies increased by 2.4%, rising from 12,012 to 12,304.
The decline in employment was more pronounced among part-time employees, men and those aged 25 and under, with full-time staff numbers falling by 6.7%, from 25,065 to 23,396, and part-time roles declining by 9% to 1,567.
In fact, the number of men employed fell by 7.3% y-o-y to 10,820, while the number of women employed decreased by 6.2% to 13,966. In overall percentage terms, men comprised 43.3% of employees and women 55.9%.
Meanwhile, the number of employees aged 25 and under declined by 19.2% from 3,632 to 2,936. This shift contributed to an increase in the average employee age, rising from 35.2 years in 2024 to 35.6 years in 2025.
Overall staff turnover rose to 24.8%, up from 24.1% in 2024, and increased from 21.2% to 24.2% when redundancies were excluded.
Creative and other non-media agencies were the worst hit, with churn rising to 27.6%, while turnover in media agencies fell to 21.7%.
Overall staff retention declined to 68.6%, down from 74.9% in 2024. Where detailed data was available, resignations accounted for 58.5% of departures, with redundancies responsible for 14.3%.
Reflecting the overall reduction in workforce size, reported employee vacancies fell considerably. Agencies reported 680 open roles across all levels of seniority, down from 1,149 in 2024, a decrease of 40.8%. Vacancies declined by 47.2% in creative and other non-media agencies and by 34.7% in media agencies.
Even so, there have been some bright moments; women now hold more than 40% of C-suite roles for the first time, accounting for 40.8% of senior positions, up from 39.9% in 2024. In creative and other non-media agencies, women’s C-suite representation rose to 39.7%, while in media agencies it increased to 42%.
In addition, ethnic diversity across IPA member agencies also improved. Among agencies reporting ethnicity data, 25.5% of employees identified as being from a non-white background, up from 23.9% in 2024 and more than four times the level recorded in 2007.
Representation was highest at entry level, with 45.5% of trainees and apprentices and 36.8% of juniors and executives from non-white backgrounds. At C-suite level, non-white representation increased to 12.7%, up from 10.5%.
Meanwhile, gender and ethnicity pay gaps narrowed slightly but remain substantial.
Based on those who supplied gender and salary data, women represent 58.2% of employees but receive 52.9% of salaries, resulting in a gender pay gap of 19.5%, down slightly on 19.7% in 2024. The gender pay gap was wider in creative and other non-media agencies at 22.6% than in media agencies at 16.6%.
Employees from non-white backgrounds account for 22% of employees and receive 18.5% of salaries, with the ethnicity pay gap falling to 19.4%, down considerably from 31% in 2024. The ethnicity pay gap remains higher in media agencies at 26.3% than in creative and other non-media agencies at 12.3%.
Within senior leadership teams, women from a non-white background hold a higher proportion of roles than their male counterparts.
At the C-suite, women from non-white backgrounds account for 7%, while men from non-white backgrounds account for 6%. Within the highest level of this C-suite category (chair/CEO/MD), this figure stands at 7% for women from non-white backgrounds and 4% for men from non-white backgrounds.
When it comes to the all-important issue of working from home, hybrid working remains the norm across IPA member agencies. Some 70.7% operate a three-day office and two-day remote working model, although most agencies mandate at least some office-based working days.
On attracting young talent, just 43.4% of responding agencies reported employing graduate trainees, apprentices or school-leaver apprentices, down from 56% in 2024. At 60.6%, media agencies were considerably more likely to employ graduates and apprentices than creative and other non-media agencies.
Nevertheless, the Census also highlights continued underuse of Apprenticeship Levy funds. It is estimated that over 85% of levy funds paid by submitting agencies remain unused by those agencies. Media agencies spent 20.2% of their levy funds on apprentice training, compared with 9% among creative and other non-media agencies.
Another sticky issue has been the rise of artificial intelligence, which is increasingly shaping agency operations.
Overall, 88.3% of agencies reported that AI is having a considerable impact on how they work. While 8% of agencies reduced their workforce in the past 12 months as a direct result of AI, 24% expect to do so in the next 12 months, with expectations of workforce reduction higher among creative and other non-media agencies (30%) than among media agencies (10%).
Finally, agencies were asked whether they maintained a central record of employees registered as disabled
Just over half (52%) reported that they do, while 45% did not. A further 3% did not know. Among the 51 agencies that recorded registered disability, 3% of their employees were identified as being disabled.
Commenting on the findings, IPA director general Paul Bainsfair said: “This year’s Census reflects an industry making important progress on gender and ethnic representation, while facing some hard truths about the shape of its workforce.
“Keeping talent pipelines open, including making far better use of apprenticeships and the Apprenticeship Levy, is no longer optional. Agencies that continue to invest in early careers, skills development and retention will be best placed to build resilient businesses and a workforce fit for the future.”
IPA director of diversity and inclusion Leila Siddiqi added: “The 2025 Census shows the real pressures agencies have faced over the past year, with higher turnover and lower retention leaving teams stretched.
“It’s a reminder of the importance of supporting wellbeing and building trust. At the same time, exceeding 40% women in C-suite roles and the continued progress on entry-level diversity shows what is possible when inclusion is prioritised.
“As AI reshapes the industry, agencies must ensure their teams can apply both technical and human skills in ways that protect creativity and foster diverse perspectives. Continuing to invest in a diverse mix of trainees, graduates and apprentices is essential to safeguarding the innovation and inclusivity that will shape the future of our industry.”
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