State of Marketing 2026: Branding is Back, But

Brand Awareness Marketing Analytics Research

The latest McKinsey marketing report on the state of marketing in Europe sends a clear signal to CMOs: branding is back at the top of the agenda, and this time it is backed by real budget growth.

According to the State of Marketing Europe 2026, 72% of marketing leaders plan to increase their marketing budgets. In a cautious economic environment, this is not a tactical move. It reflects a strategic reset in how growth is expected to happen.

About Mckinsey state of marketing report

The McKinsey State of Marketing Europe 2026 Report is based on insights from hundreds of senior marketing leaders across Europe and provides a clear view of shifting priorities, pressure points, and capability gaps in modern marketing organizations. Beyond ranking topics by importance, the report adds a critical layer of urgency, highlighting not only what matters most to executives, but where they feel their organizations are least prepared to act. The convergence of branding, budget management, marketing ROI, and AI reflects a reality in which strategy, technology, and measurement can no longer operate in silos, but must function as one system to justify growth in 2026 and beyond.

Why branding is back on top of the marketing agenda

The report shows a clear shift away from short-term performance obsession toward trust as a long-term growth driver.

Both B2C and B2B audiences are overwhelmed by volatility, automation, and constant noise. What they increasingly look for is stability, credibility, and human relevance. That is why branding, authenticity, data privacy, and employer branding dominate the top priorities in this marketing report.

Branding is no longer treated as a soft discipline. It is positioned as a strategic anchor in uncertain times.

But this renewed focus on branding comes with a structural risk.

The Measurement Gap That Is Quietly Killing Brand Investment

The problem is not that companies are investing more in branding.
The problem is that they are trying to prove branding using the wrong ruler.

Most organizations pour money into long-term brand building and then judge its success with metrics designed for short-term sales activation.
Clicks. CPA. Last-click attribution.
It is rather like assessing the quality of a restaurant by counting how many people glance at the menu in the window.

This creates a dangerously brittle system.
In the first quarter, optimism survives.
By the second, doubts creep in.
By the third, spreadsheets begin to shout louder than people.
By the fourth, the brand budget is politely euthanized in the name of “efficiency”.

What digital marketing analysis keeps revealing is not a coincidence but a contradiction: branding and marketing ROI are always flagged together as the most urgent priorities. This is not because they are in conflict, but because we insist on measuring one with tools designed for the other.

Brand investment evaluated through short-term metrics will always look indulgent, even when it is doing exactly what it should.

Branding and ROI Are Not Enemies, They Are Co-conspirators

Branding does not compete with performance.
It makes performance cheaper.

A strong brand creates predisposition.
Predisposition creates demand.
Demand improves efficiency across every channel that follows.

The paradox is simple: the more we optimise for immediate ROI, the more expensive growth becomes. The more we invest in brand, the less we need to rely on aggressive persuasion later.

The real question is not whether branding works.
That debate was settled decades ago.

The real question is whether leadership is willing to accept that not everything valuable can be proven instantly, and that the absence of a neat metric does not mean the absence of impact.

"72% of European marketing executives plan to increase their marketing budgets. In a cautious economic environment, this is not incremental growth, it is a strategic statement about where marketing is headed"

From branding to demand, a modern measurement model

To close the gap, measurement must evolve beyond last-click logic. A mature digital marketing analysis approach connects branding to demand creation through multiple signals.

1. Share of Search
This measures branded search volume relative to competitors. As branding strengthens, branded search grows and overall customer acquisition costs decline. It is one of the clearest indicators of brand health.

2. Brand-to-Direct Correlation
This tracks the halo effect of branding activity on direct and organic traffic. Branding rarely receives pixel-level credit, yet it lifts every downstream channel. Correlation analysis helps surface that hidden value.

3. Engagement Quality and Trust Signals
These include repeat visits, time spent on About pages, and newsletter subscriptions. In a trust-driven economy, these signals show movement from interest to conviction, which is the true role of branding.

The underestimated priority, AI and Agents

In the overall state of marketing rankings, Gen AI and Agents appear relatively low. Yet they are one of only four topics with the highest urgency to act, alongside branding, budget management, and marketing ROI.

Urgency drives budgets and execution. AI will not replace branding, it will amplify it. But only organizations with solid measurement foundations will be able to connect AI-driven efficiency with long-term brand equity.

The defining question for 2026

Marketing budgets are growing.
Pressure to prove ROI is intensifying.

Is your measurement infrastructure strong enough to support a brand-led strategy, or is it still optimized for short-term performance thinking?

A brand without measurement is trust without proof.
Measurement without branding is optimization without longevity.

Business growth in 2026 will be defined by companies that successfully connect branding, digital marketing analysis, and measurable demand into one coherent system.

Adcore Elite is a global digital marketing agency helping brands and businesses scale through strategic planning, advanced campaign management, and data-driven insights. As certified partners of Google Ads and Microsoft Advertising, Adcore Elite delivers performance-focused solutions, free consultations, and expert support to drive maximum ROI across search, shopping, and omnichannel campaigns.

Our clients are always ready, staying one step ahead of the market and prepared to leverage every innovation the moment it arrives.

Get exclusive CMO tips that I only share with email subscribers.

Don't forget to share this article!