The Real Reason Brands Break Up With Agencies (It’s Not Budget)

Relationships don’t end because of one bad meeting. Have you ever heard of the phrase, “Trust is earned in drops and lost in buckets”"?” 

Relationships end because of the same small issues happening again and again until the trust runs out. And if you’ve ever been blindsided by a brand-agency breakup (from either side), you’re not alone. The 2025 Marketing Relationship Survey by Setup and in partnership with the CMO Institute shows something that’s both surprising and painfully familiar:

Brands aren’t racing to leave… but they’re also not thrilled.

In other words: the relationship might still be “together,” but it’s not exactly thriving. So what’s really causing breakups right now?

Brands say the relationship gap is actually a delivery gap…

Each year, Setup’s Marketing Relationship Survey gives us a clearer look at what’s working, what’s breaking, and where brands and agencies are misunderstanding each other. And this year’s story is loud: Clients want better delivery, better value, and to feel understood.

That’s the real heartbreak. Not the contract. Not the pitch. Not the onboarding.

It’s the moment a brand realizes:

• “We’re paying a lot.”

• “We’re doing a lot of work to manage this relationship.”

• “And somehow… it’s still not working.”

Why Brands Actually End Agency Relationships + What Agencies Think

When we asked client-side marketers what caused them to end relationships in 2025, their answers were:

• Dissatisfaction with delivery (61.11%)

• Dissatisfaction with value (61.11%)

• Agency did not understand our business (44.44%)

• Dissatisfaction with relationship (410.74%)

• Dissatisfaction with strategic approach (410.74%)

Brands aren’t saying, “We broke up because we weren’t challenged enough…” 

They’re saying: “We broke up because the relationship didn’t deliver what it promised.”

Agencies have a different story about why relationships end, hence the disconnect. 

Agencies believe clients end relationships because of:

• Client budget cuts (75%)

• Change in client leadership (55%)

And while these two factors can certainly play into a relationship ending, they aren’t the full truth because brands are still telling us the deeper reason is: “The work didn’t feel worth it.”

Most breakups don’t happen because of one catastrophic failure.

They happen because:

• timelines slip and no one owns it

• strategy gets watered down

• communication becomes reactive

• the agency stops feeling like a true extension of the team

• the brand starts questioning if the value matches the cost

Relationships break over time because of repeated mistakes that were not acknowledged.

The 3 “silent killers” behind most breakups

Avoidant partners can exist in all types of relationships, even in business. If you’re a brand, these are the reasons you start pulling away. If you’re an agency, these are the reasons your client stops replying as quickly.

1. Delivery becomes inconsistent

Delivery dissatisfaction is the #1 breakup driver.

This often looks like:

• missed deadlines

• unclear ownership

• rushed deliverables

• “we’re still working on it” cycles

• deliverables that don’t match the original expectations

2. Value becomes unclear

Value dissatisfaction rose sharply in 2025 and value isn’t just “results.”

Value is also:

• clarity

• proactivity

• strategic thinking

• helping the brand feel confident in decisions

• making the brand’s job easier

3. The brand doesn’t feel understood

Brands end relationships when they feel like the agency doesn’t understand their business.

This shows up as:

• strategies that don’t fit internal reality

• messaging that misses the brand voice

• recommendations that ignore team constraints

• campaigns that look good but don’t solve the real problem

So… is it budget? Or is budget the excuse?

Sometimes a budget cut is truly unavoidable, but, often, budget becomes the cleanest “reason” to end something that already wasn’t working.

How to prevent the breakup (before it’s too late)

If you want to keep relationships healthy, you need relationship maintenance and performance reviews.

Here are 5 things that prevent breakups on both sides:

1. Monthly “value recap” check-ins - This is more than a status update. This is a chance to connect to showcase results. 

2. Clear expectations + delivery agreements - The best partnerships don’t rely on assumptions, but regularly communicate updates and changes. Some agencies in the survey report said they did not have designated account people. This is a must for seamless delivery. And on the client side, clients need to be open about making their agency a part of their team. 

3. Proactive problem-solving - If you’re an agency, don’t always wait for the client to ask. If you’re a client, know that you hired an expert and allow them to advise you. 

4. Business understanding rituals - If the brand evolves, the agency must evolve with it.

5. Feedback loops that feel safe - Brands need space to say what’s not working without fear of defensiveness. Communication needs to be open on both sides to have progress. 

The good news is that brands are staying, showing that they are not eager to leave and are willing to work through the difficulties. The agencies that win in 2026 will be the ones that treat delivery, value, and understanding as non-negotiables.

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Want help fixing the relationship before it breaks?

Setup helps brands and agencies build partnerships that actually work with clarity, structure, and trust.

If you’re a brand evaluating your agency relationship, or an agency trying to strengthen retention and delivery systems, we’d love to help.