Brand-agency partnerships look very different today than they did even a few years ago, and by 2026 that gap will only widen.

Internal marketing teams are more sophisticated, digital channels are more specialized, and the role agencies play is no longer one-size-fits-all.

As a result, the companies that get the most value from agency relationships aren’t always the biggest spenders.

They’re the ones that are clear about what they need and what they don’t.

That clarity starts with understanding the true role an agency should play inside your organization.

Too many partnerships struggle because expectations and responsibilities were never properly aligned from the start.

When that foundation is off, even strong execution can fall flat.

After working with thousands of businesses across various industries and growth stages, we consistently observe that agency success falls into two distinct partnership models, primarily shaped by company size and internal marketing maturity.

Model 1: Execution-first partnerships (large companies)

If your company generates more than $50 million in annual online revenue, you likely already have a strong internal marketing team.

Strategy, goal-setting, and planning live in-house. What you need from an agency is deep platform expertise and consistent, high-level execution.

At this stage, agencies function as specialist operators that:

• Activate the roadmap your team has already defined.
• Optimize performance inside specific channels.
• Bring advanced technical knowledge that would be inefficient to replicate internally.

When something underperforms, a strong agency partner doesn’t rush to tactics.

They help determine whether the issue lies in execution, shifting market conditions, or a broader strategic blind spot – and they bring the data needed to support course correction.

Model 2: Integrated growth partners (small to mid-size companies)

For companies under $50 million in annual online revenue, the agency relationship is different.

Internal teams are often lean, stretched, or still developing core digital expertise.

In these cases, agencies don’t just execute – they help shape the entire growth strategy.

Here, the right agency partner becomes an extension of the marketing department that can:

• Guide platform selection.
• Develop cross-channel strategies.
• Execute campaigns.
• Provide direction on tools, tracking, and infrastructure.

The relationship is more integrated because it has to be.

For many growing businesses, agencies offer access to senior-level expertise at a fraction of the cost of building a full in-house team.

That tradeoff often creates the best possible balance between speed, strategy, and financial reality.

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Finding the right agency partner

Most companies approach agency selection the wrong way.

Here’s how to improve your odds of finding a partner that actually fits your needs.

Ditch the RFPs

Many large companies use the request for proposal (RFP) process to solicit potential partners.

However, RFPs often favor vendors that excel at paperwork over those that prioritize performance.

From an agency perspective, if you don’t already know you’ve won an RFP, you’re not going to win it.

They act more as rubber stamps for a decision that has already been made.

Large companies should instead leverage their connections.

If you’re running a large internal marketing department, you probably already know dozens of professionals who could provide referrals.

Use that network to find firms doing great work, then reach out to them directly.

Smaller businesses should talk to their peers about trusted marketing vendors and then check reviews to validate those recommendations.

No agency is perfect, and every agency will have some dissatisfied clients.

But if you see patterns of negative reviews emerge, you should stay away.

Request an audit

Once you’ve identified a few potential partners, ask them to audit your current marketing setup.

In most cases, digital marketing agencies conduct these audits for free.

Keep in mind that during an audit, many agencies will point out what you’re doing wrong.

But the goal is to receive honest, constructive feedback that offers insight into what’s working and what’s possible.

The audit process will look different depending on the company’s size.

• For larger companies, agencies should only audit the platforms they’ll be working on.
• Smaller companies need a broader audit across the entire marketing funnel.

These agencies won’t be working in a vacuum.

Every element of marketing is interrelated, so they’ll need to know who manages each stage of the funnel and whether they’re doing a good job.

Companies of all sizes should collect audits from multiple sources.

This enables you to compare recommendations and understand if the partnership will be a good fit.

Large companies need partners that can integrate with their internal processes.

Smaller companies need to pick vendors with people they actually want to work with.

Both considerations are critical in ensuring long-term success.

Setting achievable goals

Once you’ve selected the right agency partner, it’s time to define your goals.

It’s an unfortunate reality that most business leaders set marketing goals that don’t align with their business goals, which puts agency partners in an untenable position before the relationship even gets off the ground.

Good agencies should challenge your goals before you even sign a contract. They should push you to dream bigger or rein you in if your expectations are unrealistic.

If a potential client in the beauty space says they want a tenfold return on ad spend (ROAS) while jumping their non-brand spend from $20,000 to $100,000, a good agency should know enough to push back.

Your potential partner should understand the economics of your business and help ensure your marketing goals align with your business goals.

Often they don’t, which is where good agencies add immediate value.

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Maintaining a productive partnership

Once the work begins, you need to keep your agency accountable. Here’s how.

Contract length

Larger companies typically sign 12-month contracts with their agency vendors.

They value stability and performance, and longer contract terms provide agencies with the time needed to establish themselves within the marketing operation.

Smaller companies can’t afford to bind themselves to an underperforming agency for an entire calendar year.

If you’re hiring an agency partner at a smaller company, opt instead for a three-month agreement that automatically renews to month-to-month.

Challenge and conflict are healthy

The most productive business-agency partnership often involves some conflict from time to time.

Great partners will challenge your thinking regularly, which can sometimes create discomfort.

But if everything is always smooth sailing, you probably aren’t growing or improving.

The goal instead is to have productive conversations that involve healthy disagreement and constant refinement.

Ongoing accountability

If you’re overseeing a brand-agency partnership, you should establish regular reviews that compare progress to the opportunities identified in the agency’s initial audit.

For smaller companies, quarterly reviews make sense. They align with the contract structure and allow you to recalibrate budget allocation.

Larger companies might review monthly or quarterly, depending on spend and complexity.

However, context here matters. You need to understand if your industry is growing or shrinking to judge your agency’s work.

For example, if your industry is down 10% year-over-year and your sales are flat, you’re outperforming your competitors.

Often, the agency or brand can obtain this information from their representatives on platforms such as Google, Microsoft, Amazon, or Meta.

Innovation and testing

Great agency partners will proactively bring new growth ideas to the table, which is particularly valuable for smaller businesses.

Large companies also benefit from outside ideas and should establish dedicated budgets for testing.

After all, if your agency isn’t investing at least a small portion of the budget into new, untested ideas, brands will find themselves falling behind competitors that are.

Innovation isn’t just about testing what works today. It’s about understanding what’s coming next.

Great agency partners should help you see what’s coming 6-12 months out, and prepare your marketing to meet those new conditions.

Businesses need an agency’s expertise, which becomes insight over the longer term.

Without it, they’ll be flying blind.

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When to make an agency change

Not every brand-agency partnership succeeds, even with the best intentions.

If your gut is telling you something isn’t working or that something could be working better, here are a few red flags that might indicate it’s time to make a change.

Your business isn’t growing

Your marketing efforts should revolve around finding new-to-brand customers. Full stop.

If your business isn’t growing and your industry is stable or growing, that’s a big red flag that marketing isn’t working.

Once an agency stops being a partner in growth, it’s time to make a change.

Your agency isn’t pushing innovation

The marketing ecosystem is constantly changing:

• Customer needs evolve.
• Platforms update features.
• New tools emerge that upend old processes.

If your agency isn’t bringing new ideas or exploring new ways to reach customers, your marketing is stagnating.

In these instances, an outside audit can reveal deficiencies and potential opportunities.

Your agency can’t explain performance

If your agency can’t contextualize your performance – good or bad – within the broader marketing ecosystem, it’s a strong indication they don’t understand your sales funnel.

Channel experts should know how their performance is affected by upper-funnel activities and how those activities affect bottom-funnel activities.

Marketing agencies for smaller businesses should know enough about the entire marketing operation and understand how performance in one area impacts another.

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The marketing reality check

The best marketing in the world won’t help a bad business grow.

A good company, combined with good leadership and a good agency, is the secret sauce of successful growth.

If one of those elements is missing, marketing will never accomplish what you hope it will.

Getting great results within a brand-agency partnership isn’t about huge marketing budgets or fancy advertising awards.

Instead, it’s about understanding what role your agency should play, and choosing a partner equipped to fill it.

When your needs align with an agency’s specific capabilities, that’s where the real growth happens.

Choosing an agency partner isn’t a one-time decision.

It’s an ongoing process that includes accountability, perpetual refinement, and, sometimes, healthy disagreement.

While this process certainly isn’t easy, it’s worth getting right.

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