WARC vs WFA

Byron Sharp revisits seminal book How Brands Grow

Professor Byron Sharp of the Ehrenberg-Bass Institute speaks with WARC’s David Tiltman to revisit the core laws behind his influential book How Brands Grow and to explain why many marketers still misunderstand how brands actually win new customers and grow market share.

Byron Sharp revisits seminal book How Brands Grow

Professor Byron Sharp of the Ehrenberg-Bass Institute speaks with WARC’s David Tiltman to revisit the core laws behind his influential book How Brands Grow and to explain why many marketers still misunderstand how brands actually win new customers and grow market share.

WARC: Social Media Alone Can't Sustain Brand Growth

A WARC analysis, reported by HORIZONT, warns that brands' growing investment in social and creator marketing faces three structural limits and cannot by itself generate unlimited long-term brand growth. The study argues that while brands optimize content and paid media for social algorithms, sustained growth requires combining social/creator activity with broader emotional brand marketing. The article was published on August 12, 2026 and authored by Nora Halwax for HORIZONT.

• A WARC study finds social marketing alone encounters three structural limits to sustainable brand growth.
• Brands are increasingly shifting larger shares of marketing budgets into social and creator marketing.
• WARC recommends combining social/creator marketing with emotional brand marketing for long-term success.

Global Brands Ditch Labour-Based Agency Fees, WFA Finds

A new report from the World Federation of Advertisers (WFA) and Agency Mania Solutions, titled 'How Brands Define, Scope and Reward Agency Work', reveals a significant shift in agency compensation models. Based on responses from 69 multinational companies with a combined marketing spend of $147 billion, the report finds that labour-based payment models, which were dominant in 2011, now represent the main compensation model for only 19% of global brands. Meanwhile, fixed-fee/output models have risen to 33%, and 'Labour + Performance' models to 21%. Performance-based fees show the strongest momentum, with 63% of multinationals expecting to increase their use, driven by AI, which is compressing labour hours. However, only 20% have evolved their commercial models in response to AI, though 61% intend to. The report also notes a shift in focus towards factors like briefing quality and trust over financial incentives.

• Labour-based payment models now represent the main agency compensation model for only 19% of global brands, down from dominance in 2011.
• Fixed-fee/output models have risen from 20% to 33% over 15 years.
• 71% of respondents were in global marketing procurement roles.

Ad Industry Lacks Strategic Thinkers, Misaligned Incentives Blamed

A report from the WFA and marketing advisory Mediasense reveals that strategic thinking is becoming increasingly crucial as AI automates routine tasks, yet the industry faces a shortage of such talent. The study, based on a survey of marketers, found that strategic thinking topped the list of talent shortages, cited by 72% of respondents. While the quality of marketing talent is generally rated positively, accessing the right skills is difficult. The report emphasizes that developing internal talent is key, but current incentive structures often discourage strategic development, favoring execution and efficiency over impact. Agencies are still evaluated on executional delivery, even as AI commodifies that layer. To close the capability gap, advertisers and agencies must adapt their incentive structures and take a long-term view on talent development.

• WFA and Mediasense published a report on the growing importance of strategic thinking in advertising amid AI adoption.
• 72% of marketers surveyed identified strategic thinking as one of their top three talent shortages.
• 46% of marketers rated the quality of marketing talent as strong or very strong.

WFA/The Drum Open Global Marketer 2026 Nominations

The World Federation of Advertisers (WFA) and The Drum have opened nominations for the WFA Global Marketer of the Year 2026. The annual award recognises global or regional marketers who demonstrate leadership across areas such as business growth, talent development, creativity/innovation and industry leadership. Nominations are open via the WFA website until November 2; a jury will select a shortlist with finalists announced in December and the winner named in February 2027. WFA CEO Stephan Loerke and The Drum deputy editor Jen Faull commented on the award’s role in celebrating marketers who combine commercial impact with creativity and responsibility.

• The World Federation of Advertisers (WFA) and The Drum have opened nominations for the WFA Global Marketer of the Year 2026.
• Nominations can be submitted via the WFA nomination page until November 2, 2026.
• A jury of experts will select a shortlist; finalists will be announced in December and the winner named in February 2027.