Why Agencies Are Struggling Right Now: A View Into the Changing Realities of Client Expectations

Across the industry, many agencies are feeling the same pressure: longer

sales cycles, smaller briefs, heightened scrutiny, and unpredictable buying

patterns.

But the underlying reasons go much deeper than market noise.

During a recent roundtable discussion between myself, Carey Evans, and

Crispin Reed, we explored what’s truly behind the shifts happening in

client–agency relationships and why even well-run agencies are finding it

harder to maintain momentum.

What emerged was a clear message: the expectations of clients have

changed, and agencies must reshape how they operate if they want

stronger, more resilient partnerships in 2026.

Here are the core insights.

Clients Are Operating Under Intense Internal Pressure

One of the most consistent themes was the level of volatility clients are

dealing with internally.

• Budgets are scrutinised more heavily.

• Approval processes are longer.

• Comfort around long-term commitments is low.

• Clients aren’t behaving cautiously because they distrust agencies.

• They’re behaving cautiously because their organisations are demanding it.

For agencies, this means two things:

• You must build trust earlier

• And you must be able to show value faster

The standard onboarding journey, quarterly reviews, and back-ended

measurement aren’t enough anymore. Value needs to be visible from day

one.

The First Purchase Is Now a Test, Not a Statement of Confidence

A major shift we discussed is how clients are structuring their first piece of

work.

Where agencies previously won large, multi-month programmes at the

outset, clients are now breaking work into smaller, safer engagements. A

large brief that would previously be awarded in full is now split into a

discovery sprint, followed by a pilot, followed by a second phase, only if

confidence is built along the way.

It’s not a reflection of capability.

It’s a reflection of risk management.

Agencies who expect the old pattern of “win big early” may find themselves

consistently disappointed. Agencies who understand that the first small

project is simply a proving ground will retain more clients and grow them

faster.

The Relationship Isn’t Strong If It Depends on One Person

There is an over-dependence on a single stakeholder in many agencies.

A strong champion is helpful, but it is not a strategy.

When the entire relationship sits with one person, one CMO, one marketing

manager, one product lead, the account is exposed. People move on.

Departments restructure. Priorities shift.

Where agencies thrive is in accounts where:

• multiple stakeholders know the agency

• the value is understood across functions

• senior leadership sees the agency’s impact

• influence is distributed, not concentrated

This broader “sphere of influence” protects revenue, enables expansion,

and helps agencies weather internal changes on the client side.

The Real Gap Isn’t Capability — It’s Strategic Confidence

Agencies are full of smart people, but many account teams are under-

equipped for the conversations clients need from them today.

Clients expect their partners to:

• discuss the wider business

• challenge assumptions

• identify risks early

• bring new ideas proactively

• guide decisions, not just execute them

Delivery used to be enough.

Now it’s the bare minimum.

Strategic confidence, the ability to understand what matters commercially

and translate that into guidance, is what clients are buying from agencies

in 2026.

This is where many agencies feel the strain. Without structured training,

strong leadership, and a clear client experience framework, account teams

default to delivery and lose influence.

AI Is Only Valuable When It’s Applied With Intention

We also explored how clients are reacting to AI adoption inside agencies.

Most clients are not anti-AI.

But they are anti-ambiguity.

They want agencies to use AI where it enhances strategic thinking, speed,

or insight but not where it undermines originality, judgement, or trust.

The risks agencies must manage include:

• inconsistent team usage

• over-reliance on automated notes or analysis

• hallucinated insights sent to clients

• unclear disclosure

• blurred lines between research and output

The agencies who are getting this right have clear internal policies, client-

facing guidance, and strong human oversight. AI becomes a tool that

elevates the work, not a shortcut that dilutes it.

Retention Is Becoming the Most Reliable Growth Engine

New business is still important, but with buying cycles extending and initial

projects shrinking, expanding existing clients is far more reliable than chasing cold leads.

Retention today is built through:

• consistent demonstration of value

• breadth of stakeholder relationships

• proactive strategic insight

• regular alignment on business priorities

• helping clients look good internally

This is where agencies can build the strongest competitive advantage —

and where the most sustainable revenue sits.

Reframing the Agency Model for 2026

What came through clearly is this: agencies are not falling behind because

of poor talent or weak capability. They’re falling behind because the

environment has changed faster than the operating model.

Clients expect:

• strategic guidance

• commercial understanding

• clear value articulation

• broader relationship building

• thoughtful AI usage

• proactive partnership

The agencies that adapt to these expectations will strengthen their

position, grow more predictably, and become indispensable to their clients.

If you’d like to watch the full discussion from the roundtable, you can

access the recording here:

Watch the roundtable recording: https://youtu.be/bc1EV7V82cs

If you’re unsure where to start but know something needs to shift, reach out

and I’ll share the first three steps I recommend to every agency preparing

for 2026.

Jo Rogers

LinkedIn

Website

Book a call