Why 40% of CMOs Are Cutting Agency Budgets in 2025 (And How to Stay Off the List)

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Let’s get real for a second.

40% of CMOs are cutting agency budgets this year.
(Not hype. That’s from Gartner’s 2025 CMO spend survey.)

If you’re still out there selling tasks instead of outcomes, blending in like every other “me too” agency, you’re not just at risk—you’re probably already on the cut list.

But here’s the good news:
Some agencies aren’t just surviving right now. They’re growing like crazy.

Why?

Because they’re leading. They’re essential. They’re uncuttable.

Vendors Get Cut. Partners Stay.

Here’s what most agencies are still doing:

• Taking orders.

• Waiting for direction.

• Hoping results keep the client around.

But when CMOs tighten budgets, they don’t cut true strategic partners—they cut vendors and noise. In-house teams and AI are replacing basic production. If your agency doesn’t feel essential, you will get replaced. Period.

You know what else CMOs are cutting? Agencies that over-promise, under-deliver, and ghost clients after the deal closes.

I’ve hired a few agencies over the past couple of years, and I can say most agencies have the slick branding and a confident talk, but once the deal is closed execution just falls apart. I’ve seen this more times than I can count. Communication fades away and no one takes ownership

This is what CMOs are frustrated with. They’re not just making cuts to save money. They’re doing it after getting tired of disappointments.

Joey Coleman says it best:

“Most clients don’t leave because of price; they leave because they don’t feel seen, heard, or supported in the first 100 days.”

Remember that while agency teams get excited and start high-fiving each other once the deal closes, the client is sitting there thinking, “Did I just waste my budget?” That gap between your excitement and their anxiety is where trust is either built or destroyed.

And it’s true. Our mastermind member Marty took that to heart, redesigned his client experience, and grew to a multi-million-dollar agency because he didn’t wait for tasks—he led, flew out to meet clients, set clear expectations, and became indispensable.

Make Yourself Uncuttable

You want to stay off the cut list? Lead. Own the relationship. Here’s how:

1. Find Quick Wins Fast

Don’t wait six months to show value. Launch something in the first 30 days. Fix something they didn’t even ask for. Send a Loom video explaining how you improved their funnel. Let them say, “These people move fast.”

2. Overcommunicate When Things Aren’t Working

Most agencies go quiet when results dip. Leaders say, “Here’s what’s happening, here’s what we’re changing, here’s what to expect.” Transparency builds trust.

3. Be a Resource, Not a Responder

Stop waiting for tasks. Show up with new hooks, funnel fixes, better angles. Be the call they make when anything breaks in their business, not just when they need a landing page.

4. Take Ownership, Not Orders

Stop asking, “What do you want us to do next?” Start saying, “Here’s what we’re doing, and here’s why.” That’s how you shift from vendor to partner.

5. Productize and Simplify

If it takes you 30 minutes to explain what you do, you’re in trouble. Make your offer outcome-driven, simple, and memorable. Like the PR agency that said, “We turn publicity into pipeline.” That sticks.

Real Results from Agencies Leading This Way

Just look at Brittany, who stopped winging it, joined the mastermind, and committed to leading:

• Revenue up 35% in a quarter

• Profit up 41%

• Churn dropped 32%

• SEO and social revenue doubled

And she didn’t get there with a fancy hack. She got there by leading and building trust.

This Isn’t Just About Staying Off a Cut List

It’s about building an agency that deserves to grow—one that earns trust, delivers outcomes, and leads.

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