Trust and honesty are the foundation of any strong agency-client relationship, but while easy in theory building real trust can be complex, especially in a climate where marketing budgets are being squeezed.

With AI adoption, in-housing on the rise and a wave of mergers and consolidations redefining the industry, traditional relationships are being put to the test. With some agencies vague about how they profit, a lack of transparency has eroded trust. Equally, brands that demand more for less are leaving agencies feeling under pressure.

Despite these challenges, the need to build and maintain trusted relationships has never been greater.

Today (28 May) in the latest edition of Marketing Week’s webinar series The Lowdown, editor-in-chief Russell Parsons was joined by Paul Arnold, psychotherapist and founder of Tranquillity Therapy, marketing procurement expert Tina Fegent, Becky McKinlay, managing director at Oystercatchers and David Wheldon, chief brand officer of Allwyn to discuss what a healthy agency-client relationship should look like in 2025.

Finding the right agency partner

Before trust can be built, the right partner must be found. That begins with a fair, open and realistic pitch process, according to Fegent, who said the pitch must align with both “brief and budget”. During this stage, procurement teams and intermediaries play a crucial role.

Fegent argued the best procurement professionals act as “strategic enablers”, not just “tactical cost cutters”. That means collaborating with stakeholders and staying up to date with market trends to recommend the best commercial options and working models. Frequent dialogue is also key.

‘More complicated’: Uncovering the current state of the pitch process

“It creates a safe space for honest feedback and helps the right partnerships thrive,” Fegent said.

Both sides should enter the pitch process with purpose, McKinlay added.

“Brands need to be clear on why they’re pitching and agencies should be honest about why they want to take part,” she said.

“Cultural alignment, mutual respect and transparency around what’s not working are critical, along with keeping your promises on timelines, budgets and ways of working.”

Honest remuneration

Remuneration models aren’t just a financial detail, they can make or break a relationship. Talking openly about pay during the pitch process is vital to ensuring long-term success. Ultimately, clients must understand the value an agency can bring.

“The goal is to match the remuneration model with how value is created, because obviously it’s about understanding the scope of work and that is a joint effort,” Fegent said.

“I don’t agree when clients dictate what the scope of work is and what the deliverables are, because agencies are the expert.”

McKinlay agreed, emphasising that any payment model must be grounded in “transparency and fairness”, ideally with a clear link to outcomes and results.

Trust and transparency

Trust is the basis of any good relationship, whether personal or professional, and when it breaks down in marketing partnerships things can unravel quickly.

“As I watch relationships go wrong in this sector, it’s nearly always because the trust breaks down,” said Wheldon, who noted the crux of building trust is “under-promising and over-delivering”.

From a psychological standpoint, Arnold argued trust is built through deeper human understanding.

“It’s not about being perfect, it’s about being honest,” he said. “You have to create opportunities where the truth can be spoken.”

The panel agreed that missing deadlines, failing to deliver on budget or breaking promises are major client frustrations. On the flip side, agencies lose trust when clients give poor feedback, delay responses or lack commitment.

Why brands are rethinking how they pay their agencies

For Wheldon, much of the distrust in client-agency relationships comes from opaque financial practices. He pointed to the rise of media agencies and the “unwillingness to put the truth on the table”.

“It is an admirable thing to say: ‘If you want this team to do this work it will cost you this much and you will get it. If you can’t pay that much, you won’t get it,'” he said. “The lack of being straight about things doesn’t help any relationship.”

Transactions aside, McKinlay believes honest relationships should go beyond financials to be “consultative, challenging and motivating”.

Tackling more with less

All businesses, whether brand or agency, are tackling the challenge of doing more with less. Therefore, clients and agencies need to work “smarter together”, said Fegent.

“It all comes down to communication and aligning on objectives,” she explained. “What are the KPIs of each team, from marketing to PR to design. We need to address the real business needs, but be in it together.”

Arnold pointed to short CMO tenures, shrinking agency-client lifespans and economic uncertainty as driving instability in the industry.

“We’re living in a culture of fear…We’re seeing a mania in the business. We’re seeing a lot of burnout and people try and dissociate from the pain,” he said. “Leaders on both sides are shapers of culture and what we need from them on both sides is to create a culture of potential, not of performance.”

The panel also touched on the wider industry shifts shaping agency-client dynamics, including the impact of AI, the dominance of platforms like Meta, the evolving role of independent versus holding companies and major moves like the IPG-Omnicom merger.

The next episode of The Lowdown will air on 25 June.