Red Flags vs. Green Flags in Brand–Agency Relationships
Brand–agency relationships are a lot like dating. Most of the issues come from a lack of understanding and communication.
At the beginning, everyone is excited and trying to put their best foot forward to be impressive.
Then real life hits, and the mask falls off.
Just like how the bathroom may not always stay tidy or the makeup routine becomes less flashy in a romantic relationship, business partners have deadlines pile up, priorities shift, budgets tighten, and/or leadership changes, ending the honeymoon phase. Suddenly, you’re not sure if this comfort is building something long-term, or if you’re seeing their true side and slowly heading toward a breakup.
So what should you actually look for in a partner? In love, consistency, communication, and alignment help find the perfect person. For business, it’s pretty much the same.
Setup’s 2025 Marketing Relationship Survey gives marketers a rare, honest look into what brands and agencies say is working and what quietly destroys partnerships.
The truth is that relationships fail because of patterns, mistakes that pile up over time, even after multiple warnings. So here are the most common red flags and green flags in the agency-client relationship based on what real marketers are telling us.
Red Flags (What predicts a breakup)
🚩 Red Flag #1: Delivery keeps slipping
The #1 reason brands end relationships is dissatisfaction with delivery (61%).
If delivery is inconsistent, everything else becomes harder:
trust fades
confidence drops
stress rises
the brand starts questioning the partnership
Delivery is more than project management, it’s relationship health. Agencies need to have the proper resources and team to support their clients, and not just showcase the A team during the pitch. The survey also revealed that some agencies do not have a designated account team which is crucial for relationship maintenance.
🚩 Red Flag #2: The value doesn’t feel worth the cost
Brands ended relationships due to dissatisfaction with value (61%).
This doesn’t always mean the agency is “too expensive.”
It often means:
outcomes aren’t clear
impact isn’t being communicated
the brand feels like they’re doing too much of the work
the agency feels like a vendor instead of a partner
This is another area where having an account lead to nurture and maintain the client relationship is important.
🚩 Red Flag #3: The agency doesn’t understand the business
Brands ended relationships because agencies didn’t understand their business 44% of the time.
This is one of the most painful red flags because it creates constant friction.
It sounds like:
“This isn’t realistic for our team.”
“That’s not how our stakeholders think.”
“This doesn’t align with our customer.”
“We’ve tried this before.”
When understanding is missing, even good ideas land wrong. The agencies can work to communicate as best they can, but also in order to have that base line understanding, clients need to let the agencies in on their strategies and meetings as if the partner is a part of their team. The survey revealed that agencies needed more data sharing and brand access in order to do their job.
🚩 Red Flag #4: The relationship becomes reactive
Brands ended relationships due to dissatisfaction with relationship quality (41%).
The early days feel proactive. The later days feel like:
“Just tell us what you need.”
“We’re waiting on you.”
“We didn’t know that changed.”
“Sorry, we missed that.”
Reactive relationships always break eventually. Even though the honeymoon phase has passed, it’s important to keep the spark alive.
🚩 Red Flag #5: Both sides are living in different realities
This might be the biggest red flag of all.
Brands say breakups happen because:
delivery + value + understanding
Agencies think breakups happen because:
budget cuts + leadership changes
Both can be true, but the disconnect matters because if they aren’t even seeing eye to eye on what the issue is, then they can’t fix the problem.
Green Flags (What predicts long-term partnership)
✅ Green Flag #1: Chemistry is real (and it matters)
Clients rated chemistry as a top selection factor: 87%.
Chemistry is more than a “soft” skill. Chemistry impacts:
speed of decision-making
trust under pressure
feedback quality
scope change collaboration
how understood the brand feels
If chemistry is missing, everything feels harder than it needs to be, and both parties may end up feeling like they’re walking on egg shells.
✅ Green Flag #2: The agency challenges the brand (in a healthy way)
Brands ranked “agency challenges me” extremely high: 93%. Brands want a partner, not a yes-man.
They want partners who:
bring fresh perspective
push for stronger thinking
ask hard questions
elevate the strategy
The key to making this dynamic work is respect. Challenge without trust feels like arrogance. Challenge with trust feels like leadership.That’s why chemistry needs to be at the heart of it all.
✅ Green Flag #3: Specialized capabilities are clear
Clients also ranked specialized capabilities as important at 87%.
Brands repeatedly showed in the survey this year that they are leaning toward specialists more than generalist agencies.
Brands want to see a partner who is confident in what they do and can show the proof that they can deliver it.
✅ Green Flag #4: Operational excellence exists behind the scenes
Agency challenges this year include:
project scoping 46%
scaling for projects 44%
Operational excellence is what keeps delivery strong. You can’t have a healthy relationship if the systems can’t support it. That is why Setup conducts an Agency Assessment process with agencies . We work to understand the agency's weaknesses and strengths, and then provide consultation to help them show up as their best selves. That way, we know when we recommend agencies for a brand, we know they are well-vetted and well-suited for your needs.
✅ Green Flag #5: Both sides are trying to be good partners
Both sides must be willing to do the work for anyone to succeed. If you select an agency, do the work to make them your partner…otherwise, the effort, time, and money is wasted. If you are an agency selected, do the work to prove you deserve to be there.
The best partnerships don’t come from one side “doing everything right.” They come from mutual effort.
Clients want agencies to deliver, prove value, and understand them. Agencies want clients to share data, align goals, and give feedback. Setup helps brands find the right agency partners and helps agencies strengthen how they deliver, retain, and grow.
If you’re seeing red flags and are in the wrong partnership, or want to protect the green flags you already have, we can help.
For Client-side Marketers
for agency leaders
Setup’s 2025 Marketing Relationship Survey gives marketers a rare, honest look into what brands and agencies say is working and what quietly destroys partnerships.
The truth is that relationships fail because of patterns, mistakes that pile up over time, even after multiple warnings. So here are the most common red flags and green flags in the agency-client relationship based on what real marketers are telling us.