Observed Signal · Sep 24, 2026 · Research Publication · Source: The Drum · Impact: 2/5 · Sentiment: Negative

Agencies and brands disagree on service delivery, study finds

Executive Signal Summary

New research by The Drum and iResearch Services, presented at The Drum Live, reveals a significant gap between how agencies and brands perceive agency performance. While 77% of agency leaders believe they deliver what brands want, only 23% of brand marketers agree, and 47% actively disagree. The study, based on a global poll of 600 senior marketers (averaging $346M in revenue), also found that over three-quarters of brand marketers expect to bring brand strategy in-house by 2030, whereas less than half of agency leaders agree. Additionally, AI is a growing focus: 59% of brand-side marketers rank deep AI expertise as the most in-demand agency skill, and 71% expect AI to significantly shape workflows by 2030, with 45% predicting a human-AI hybrid model. Despite AI-driven efficiency expectations, 80% of marketers still foresee rising marketing costs by 2030. The Drum Live panel, featuring industry leaders like Michele Rousseau and Ajaz Ahmed, emphasized the need for agencies to challenge briefs and deliver cultural insight.

Polaris7 AgentPolaris7 Strategic Assessment
High Confidence

Highlights a significant industry perception gap that could impact agency business models, relevant to AdTech and marketing.

SIGNAL RADAR

Track Real-Time Agency-Client Relationship Signals & Market Shifts

Polaris7 autonomous intelligence agents track regulatory filings, primary sources, executive changes, and deal flow 24/7. Create your free Explorer workspace to monitor these entities.

Start Free in Explorer
Free Explorer tierNo credit card requiredInstant watchlist setup

Key Takeaways & Evidence Grounding

  • 77% of agency leaders believe they deliver what brands want, but only 23% of brand marketers agree (47% actively disagree).
  • The Drum and iResearch Services' 'Mind The Gap' report surveyed 600 senior marketers globally (director level+), with an average company revenue of $346M. The report was released on September 25, 2026.
  • 80% of brand marketers expect brand strategy to be handled in-house by 2030, compared to 49% of agency leaders.
  • 59% of brand-side marketers identified deep AI expertise as the most in-demand agency skill, and 71% expect AI to significantly shape workflows by 2030.
  • 69% of brands and 56% of agencies believe AI will improve profitability, but 80% of marketers still foresee rising marketing costs by 2030.

Ontology Mapping & Concepts

Primary Source Grounding & Direct Attribution
Direct Origin Attribution
Primary Reporting: The Drum•Published: Sep 24, 2026
Original Coverage Title: “Agencies think they’re delivering what brands want. Brands disagree”

Related Market Signals & Shifts

Recent verified developments and strategic activity across this market segment.

Agency / Brand Talent TrendsMar 10, 2026

Brand Side Offers Better Job Satisfaction Than Agencies

A NewtonX survey conducted for ADWEEK finds agency-side employees report lower job satisfaction and greater appetite to leave compared with brand-side marketers. The data show 53% of brand marketers plan to remain in their roles for the next 12 months, while 54% of agency executives expect to go independent or start their own firms within two years. Agency staff report lower job security (44% vs. 56%) and worse work–life balance (55% vs. 65%). The article links these trends to industry consolidation, budget cuts (including WPP’s £400M reduction), tighter marketing budgets, and differing perceptions of AI—agencies view AI as a headcount risk, brands view it as a productivity tool.

Read assessment
Agency & ConsultancyAug 18, 2026

Brands Navigate the Agency Ecosystem and AI Trust Issues

Hello Partner's newsletter (2026-08-18) examines how brands navigate a growing and complex agency ecosystem, citing Agency by Agency data that the UK agency sector nearly doubled in ten years and highlighting brands' desire for strong relationships, cross-channel expertise, and human touch. The edition also covers Anthropic's new AI content watermark in response to EU regulations, emerging research on consumer trust in LLMs and creators, and a Wall Street Journal piece by Katie Deighton on brands engaging Reddit communities and moderator pushback.

Read assessment
Agency Business ModelsSep 9, 2026

GWA Study: CMOs Shift In-House, Agencies Need New Models

The German Association of Advertising Agencies (GWA) has published a white paper titled "The New Value. Agencies in the Tension Between AI Maturity and Customer Expectations." Based on surveys of 170 CEOs/CMOs and 78 agency executives, the study reveals that 80% of marketing decision-makers plan to move more work in-house thanks to AI, particularly in research (52%), creative (50%), and production (44%). However, only 8% expect agency roles to shrink, suggesting agencies will take on new strategic and integration tasks. The study highlights that AI is deeply embedded in agency workflows, with 76% having AI-based offerings, yet 67% cite talent shortages as a top hurdle. It challenges assumptions that AI lowers costs, pointing to new costs in licenses, infrastructure, and governance. Only 10% of companies have fully integrated AI into their processes, indicating an industry in transition.

Read assessment

Track Real-Time Market Signals & Shifts

Set up custom watchlists to receive automated, evidence-grounded executive digests whenever material signals or shifts occur across your tracked landscape.