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Agentic AI for Agencies in 2026

bmckeiver

<hr /> Digital agencies are like the heroes in a Greek myth. Driven by a quest for creative glory, they partake in an often perilous business odyssey. Along the way, they acquire “supernatural” skills and knowledge to help them navigate the competitive sirens and conquer impossible feats of digital transformation. At the same time, growth requires a bit of Gorgon-slaying, and it ain’t always pretty. Servicing existing customers is hard enough, but finding new business can be an epic battle. And yet, when an amazing new website or experience launches – and a brand takes pride in the results – it can become the stuff of legends.It's no secret that agencies are under increasing pressure to perform. As such, they’re having to transform. But this isn’t new territory for these nimble Argonauts. They’ve faced change time and again (I should know, having owned a tech-focused digital agency for 17 years). That said, the latest character in this tale – <a target="_blank" href="https://research.ibm.com/blog/what-is-generative-AI">Gen AI </a>– is like a Minotaur in a maze. Agencies are getting flanked from all sides. Even as some brands strengthen their in-house resources, many organizations are mired in confusion and need an agency’s guidance. Traditional business models have been disrupted, and competition is on the rise. And on the other end of the spectrum, tech vendors are looking for agency partners to drive more opportunities. It's a lot.Still, innovation is activating real value across the sector, and M&amp;A is proving to be a rapid path for driving differentiation and competing for business. Ad tech is one reflection of this. Agencies and marketers rely on it heavily, and while 2024 was solid, the third quarter was worthy of a Golden Fleece. According to <a target="_blank" href="https://lumapartners.com/presentations/q3-2024-market-report/">Luma Partners</a>, M&amp;A deal volume was up 118% year-over-year, the highest since the first half of 2022.Agencies did a similar acquisition dance in 2024, with a slew of deals from small to large. In December, Omnicom Group, one of the world’s biggest agencies, announced that it was <a target="_blank" href="https://investor.omnicomgroup.com/news/news-details/2024/Omnicom-to-Acquire-Interpublic-Group-to-Create-Premier-Marketing-and-Sales-Company/default.aspx">acquiring Interpublic Group</a> to expand its offerings across CRM, data, digital commerce, precision marketing, and more. This comes just as marketing budgets are expected to stabilize or increase in 2025.Even firms with a tight focus on digital transformation bought big. Earlier in the year, <a target="_blank" href="https://www.valtech.com/en-us/">Valtech</a> – a reknowned agency that pitches itself as the “experience innovation company” – <a target="_blank" href="https://www.valtech.com/en-us/news/valtech-completes-acquisition-of-kin-carta/">completed its purchase</a> of Kin + Carta, a global digital consultancy. Now, <a target="_blank" href="https://www.bizstream.com/">BizStream</a> has joined the M&amp;A mythology. The Michigan-based digital agency – which specializes in strategy, design, and development – just announced its acquisition of <a target="_blank" href="https://www.refactoredmedia.com/">Refactored</a>, a Colorado-based agency known for its expertise in digital transformation and advanced user experience design. Refactored is also known for its proven experience as a U.S.-based <a target="_blank" href="https://www.storyblok.com/">Storyblok</a> partner, adding to BizStream’s long list of CMS technology specializations. This includes platforms like <a target="_blank" href="https://cmscritic.com/products/kentico">Kentico</a>, <a target="_blank" href="https://cmscritic.com/products/kontentai">Kontent.ai</a>, <a target="_blank" href="https://cmscritic.com/products/payload">Payload</a>, <a target="_blank" href="https://cmscritic.com/products/wordpress">WordPress</a>, and <a target="_blank" href="https://cmscritic.com/products/progress-sitefinity">Progress Sitefinity</a>. “We’re thrilled to have Refactored join BizStream, as their expertise in digital transformation and brand storytelling perfectly aligns with goals of expansion and growth,” said <a target="_blank" href="https://cmscritic.com/critics/bmckeiver">Brian McKeiver,</a> BizStream Co-owner, Solution Architect. “This acquisition allows us to deliver an even broader range of modern, scalable, and engaging solutions to our clients. It also opens some doors into new areas of opportunity for BizStream. We look forward to continuing our tradition of exceptional results, now with an expanded team and enhanced capabilities.”It's worth mentioning that Brian McKeiver has also been a CMS Critic contributor, exploring the realm of artificial intelligence through the agency lens. You can read his article, <a target="_blank" href="https://cmscritic.com/responsible-ai-principles-for-digital-marketing-and-content-teams">“Responsible AI Principles for Digital Marketing and Content Teams,”</a> and I highly recommend downloading his <a target="_blank" href="https://bit.ly/Responsible-AI-Guidelines-For-Content-Teams"> AI Principle Worksheet</a>.<h3 id="expanded-capabilities-and-a-headless-cms-accelerator">Expanded capabilities and a headless CMS accelerator</h3>As noted, BizStream already boasts a strong aptitude for CMS as part of its core technology portfolio. And while both companies provide a similar range of services – from visual design to web development – Refactored’s proven success in creating digital strategy, data-driven digital experiences, and brand storytelling will complement BizStream’s existing expertise. Refactored has cultivated a track record for executing strategies based on deep industry understanding, audience insights, and key channels and technologies. By leveraging its expertise in digital transformation, advanced user experience design, and tailored brand and content development, the unified team aims to deliver substantive business results.BizStream’s customers will also have access to Refactored’s <a target="_blank" href="https://www.refactoredmedia.com/web-accelerator/">Web Accelerator</a> solution, which simplifies the adoption of modern <a target="_blank" href="https://cmscritic.com/what-is-a-content-management-system-cms">headless content management </a>technology while reducing costs and mitigating risk. Web Accelerator provides a complete, pre-built website framework using the Storyblok methodology – which streamlines the transition to a headless CMS.Accelerators are certainly having their moment within the agency tapestry. These custom solutions are purpose-built to deliver a quick startup, easier onboarding, and better user adoption. Refactored’s Web Accelerator is designed with composable principles in mind, helping companies realize faster business value while future-proofing their stack with a centralized content model that makes migrations a thing of the past.Storyblok continues to blaze trails in the headless CMS landscape, making this particular accelerator even more attractive. With a killer UX and a strong commitment to exceptional customer experience and outcomes (CEO <a target="_blank" href="https://www.linkedin.com/in/dominikangerer/">Dominik Angerer</a> once told me “I’ve never had a customer leave because of our product”), Storyblok is building momentum as it eyes the larger addressable U.S. market. Last year, it sold investors on that vision, <a target="_blank" href="https://cmscritic.com/storyblok-is-writing-its-next-chapter-with-an-80m-series-c-heres-why-it-matters">closing on an $80 million Series C</a>. <h3 id="agencies-are-poised-for-growth,-even-as-pressure-mounts">Agencies are poised for growth, even as pressure mounts</h3>Given the growing trend of M&amp;A activity last year, the digital experience sector was already signaling some healthy activity heading into 2025. That prediction paid off at the beginning of January, when <a target="_blank" href="https://cmscritic.com/products/contentstack">Contentstack</a> – a leading headless CMS – <a target="_blank" href="https://cmscritic.com/contentstack-just-acquired-lytics-a-real-time-customer-data-platform-heres-why-it-matters">purchased Lytics</a>, a respected customer data platform. Of course, there were numerous factors driving that acquisition.As I previously mentioned, agencies also had some wins. But the picture is far from clear. As always, it’s helpful to look at where we’ve been for a glimpse of what’s ahead, and I found a couple of sources that provide a modicum of consensus. Fair warning: these are both from services companies in the agency business, so I assume a bit of bias is baked in. Just a few weeks ago, <a target="_blank" href="https://www.rswus.com/survey/rsw-us-2025-new-year-outlook-report/">RSW/US published some comprehensive research</a> on key trends across the agency landscape. The report is about 30 pages long, but worth a deeper dive – and it’s free to download.The sample included over 5,000 marketing services, advertising, and PR firms in the U.S. and Canada, with capitalized billings ranging from under $3 million to $75 million. In the mix were full-service, digital, PR, and marketing consultancies. While this represented a broad set of disciplines, many of these shops undoubtedly build websites and apps, implement CMS and other DX technologies, and manage content and marketing strategies.As I reflected in my <a target="_blank" href="https://cmscritic.com/down-the-agency-rabbit-hole-a-post-opticon-chat-with-chris-kostakis-cto-at-hero-digital">Opticon follow-up</a> with <a target="_blank" href="https://www.linkedin.com/in/chriskostakis/">Chris Kostakis</a>, CTO at <a target="_blank" href="https://herodigital.com/">Hero Digital</a>, the outlook from agencies is mostly positive as brands and marketers increasingly rely on their expertise. According to RSW/US, 78% of agencies expect their business to improve in 2025. At the same time, there are headwinds. Over one-third of participants reported a decline in business from 2023 to 2024, likely driven by client demand and increased competition. AI is also disrupting the agency business model and could further drag down performance. This is precisely why the rapid development or acquisition of strategic services – including the expansion into new technologies – is critical.It's worth noting that <a target="_blank" href="https://sparktoro.com/blog/the-state-of-digital-agencies-in-2024-big-challenges-bigger-optimism-and-is-remote-work-here-to-stay/">Rand Fishkind and his Sparktoro team</a> recently published their own independent research on the same subject, trying to determine how shops have been fairing over the last 12 to 24 months. I covered some of their conclusions <a target="_blank" href="https://cmscritic.com/down-the-agency-rabbit-hole-a-post-opticon-chat-with-chris-kostakis-cto-at-hero-digital">in a recent article</a>, and the assessment was decidedly less “glowing” around last year’s performance. I would encourage reviewing that data as well for some additional context. <h3 id="trust-in-digital-agency-partners-is-solid">Trust in digital agency partners is solid</h3>Despite the tectonic shifts, agencies are still perceived as high-value partners. According to the RSW/US research, 62% of marketers believe their agency partners are “ahead of the curve,” particularly when it comes to new trends and technologies. This positions agencies as a trusted source for guiding marketers and brands on a wide range of investments and considerations, which certainly includes the composition of a modern tech stack.Agencies, likewise, have greater confidence in their preparedness to meet their customers’ expectations regarding new trends and technologies (between a 6 and a 10) – a slight increase from previous years.On the subject of new technologies, here’s the big one: 73% of agencies cite AI-powered personalization as the top trend for 2025. Just as we heard from vendors, agencies, and customers at the <a target="_blank" href="https://cmscritic.com/reflections-on-cms-kickoff-25-from-the-aem-guy">Boye &amp; Company CMS Kickoff 25</a>, AI is no longer an emerging tool but a critical driver of automation, efficiency, and innovation. While the future is still a bit murky, what’s abundantly clear is that agencies are under increasing pressure to prove their value and expertise in areas like data-driven insights, cutting-edge creativity, and specialized tech solutions – positioning them as indispensable partners. They also need to deliver measurable impact around KPIs and ROI. These will be the defining factors that help agencies win business against both competitors and in-house resources.<h3 id="why-it-matters">Why it matters</h3>There’s a reason why Jason dragged all those Argonauts with him: there’s strength in numbers. With 50 heroes sailing the Argo, he had a better shot of navigating rough seas and avoiding any siren calls. With BizStream’s acquisition of Refactored, they’re tapping that same mythology of combining forces to scale and succeed. While some mergers focus more on expanding an addressable market reach, technology pairings often zero in on specific IP or resources that bridge a missing gap. In this case, BizStream is benefiting from Refactored’s broader strategy and capabilities, as well as its Web Accelerator component. By reducing the hassle factor of migrating to a headless CMS, they will have another ace in their hand for powering growth.A big part of advising on any stack is choice, and BizStream is delivering that in spades. They provide expertise in multiple CMSes and DX solutions, necessitating an agile and objective mindset for choosing the right technology for each project. At the same time, having a broad menu requires knowledgeable teams across each platform – which can be challenging to maintain.Digital agencies continue to be resourceful in the age of AI, leading their customers from chaos to clarity. As brands double down on hyper-personalization and other advanced AI-powered capabilities, they will require knowledgeable partners to get there. My guess is that we’ll see more of these “unified fronts” via M&amp;A and strategic alliances, allowing agencies to compete more effectively in the AI theater and at the edge. That's good, but only if it remains tightly focused on a firm's core business. The track record for agencies becoming product companies is uneven at best and might deter from the mission.Despite any positive momentum in the aforementioned studies from RSW/US and SparkToro, 2025 might prove more challenging than anticipated, especially as the political and policy-making dynamics in the U.S. continue to evolve and players like <a target="_blank" href="https://www.deepseek.com/">DeepSeek</a> disrupt the status quo. This is where an agency’s expertise, wisdom, and trust can deliver real value – and transform a myth into legendary success. <hr /><h3 id="upcoming-events">Upcoming Events</h3> <img style="width:30.46%" src="https://cmscritic.com/ms-content/uploads/2024/11/cms-summit-25.png" alt="" /><h4 id="cms-summit-25"><a target="_blank" href="https://www.boye-co.com/conferences/cmssummit25">CMS Summit 25</a></h4>May 13-14, 2025 – Frankfurt, GermanyDon't miss the first European edition of our prestigious international conference dedicated to the global content management community! CMS Summit 25 will bring together top-notch speakers, our renowned learning format, and engaging social events. Hear from leading practitioners like Deutsche Bahn, Dr. Oetker, and more – and join customers, agencies, and CMS vendors as we discuss current trends and what's ahead for the content and digital experience fields. Connect and network at the only vendor-neutral, in-person conference focused on CMS. Space is limited for this exclusive event, <a target="_blank" href="https://www.boye-co.com/conferences/cmssummit25">so book your seats today.</a> <img style="width:31.83%" src="https://cmscritic.com/ms-content/uploads/2025/01/cms-connect-2025-logo.png" alt="" /><h4 id="cms-connect-25"><a target="_blank" href="https://www.boye-co.com/conferences/cmsconnect25">CMS Connect 25</a></h4>August 5-6, 2025 – Montreal, CanadaWe are delighted to present the second annual summer edition of our signature global conference dedicated to the content management community! CMS Connect will be held again in beautiful Montreal, Canada, and feature a unique blend of masterclasses, insightful talks, interactive discussions, impactful learning sessions, and authentic networking opportunities. Join vendors, agencies, and customers from across our industry as we engage and collaborate around the future of content management – and hear from the top thought leaders at the only vendor-neutral, in-person conference exclusively focused on CMS. Space is limited for this event, <a target="_blank" href="https://www.boye-co.com/conferences/cmsconnect25">so book your seats today.</a>

BizStream Acquires Refactored, Adds Strategic Digital Services and Headless CMS Accelerator 

matt-garrepy

Down the Agency Rabbit Hole: A Post-Opticon Chat with Chris Kostakis, CTO at Hero Digital

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Agentic AI for Agencies in 2026

BizStream Acquires Refactored, Adds Strategic Digital Services and Headless CMS Accelerator

Down the Agency Rabbit Hole: A Post-Opticon Chat with Chris Kostakis, CTO at Hero Digital