Observed Signal · Jul 8, 2026 · Research Report · Source: The Drum · Impact: 2/5 · Sentiment: Positive
Clients Value Agencies; Many Open to Outcome-Based Pricing
New research from the Institute of Practitioners in Advertising (IPA), conducted with brand-tracking firm Tracksuit, surveyed 200 senior brand-side marketers (each overseeing budgets of at least £1m). The study found nine in 10 respondents view their agencies as either central to commercial success or meaningfully contributory. Top-valued agency capabilities were high-quality asset production (83%), strategic brand expertise (80%) and specialist channel knowledge (79%). However, substantial gaps exist between what clients value (for example, stretch/growth thinking and challenge to briefs) and what they report actually receiving. Two-thirds of respondents believe current agency charging undervalues work, and 54% expressed interest in exploring outcome-based pricing. IPA director of value Ed Palmer commented that agencies should take heart but must better deliver and be compensated for what clients value.
Survey reveals client perceptions of agency value, capability gaps and broad interest in alternative commercial models — relevant for agencies, media planners and client-agency contracting but not platform-level or regulatory-shifting news.
Track Unilever Signals & Market Shifts in Real-Time
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.
Key Takeaways & Evidence Grounding
- The Institute of Practitioners in Advertising (IPA) commissioned research conducted with Tracksuit.
- The survey polled 200 senior brand-side marketers managing budgets of at least £1m.
- 90% of respondents said their agencies are either “central to their commercial success” or “contribute meaningfully to their results.”
- Top-valued agency capabilities: excellent quality of asset production (83%), strategic brand expertise (80%), and superior specialist knowledge of key channels (79%).
- 66% said current agency charging undervalues their work and 54% are interested in exploring outcome-based pricing.
Connected Companies & Entities
2 Entities mapped“That ranking seems to bear out Unilever exec Rani Al Hajji’s provocative statement to The Drum last week: “In the past, we were looking for ...”
“Today, the Institute of Practitioners in Advertising (IPA) has some good news for those agencies: the vast majority of clients still value t...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Agencies and brands disagree on service delivery, study finds
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.
Agencies Must Prioritize Partnerships Over Fees
An ADWEEK Adspeak/Brandweek panel featuring Nadja Bellan-White (Group CEO, M&C Saatchi), Coltrane Curtis (Founder & Managing Partner, Team Epiphany) and Kern Schireson (Chairman & CEO, Known), moderated by Alison Weissbrot, argued that traditional, fee-based agency models must be reinvented. With tightening client budgets and AI changing workflows, the panel advocates shifting to incentive‑aligned partnerships tied to outcomes, deeper specialization, empathy-driven client relationships, and shared accountability. Practical tactics discussed include embedding test‑and‑learn budgets, understanding board‑level KPIs, deploying agile “tiger teams,” and using a “Three Ideas Framework” to manage risk and build trust. The discussion frames these changes as necessary to create resilient, high-performing agency‑client relationships in a rapidly evolving marketing environment.
Agencies Should Prioritize Client Value Over Structure
Agency leaders interviewed by The Drum argue the long-running debate between full-service and specialist models is less important than delivering client value. Contributors emphasise four client priorities—accountability, strategic continuity, flexibility and commercial outcomes—over agency structure. Several agency executives say integrated systems are valuable primarily because they create clear ownership and faster decision-making, while others stress protecting strategy from briefing to execution. The article and an accompanying Drum Podcast discussion note AI's role in automating execution, which will increase the premium on human judgement and strategic advice.
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.