Brands are not choosing agencies as digital-transformation partners: report

Even as digital transformation becomes ubiquitous, digital marketing and creative agencies are far from being the partner of choice to execute these projects, despite the customer-facing nature of many of these assignments. IT companies, AI specialists, and technology consulting firms top the list of preferred partners, according to a new study on digital transformation from VML. 'Unlocking the power of digital transformation' was created after a survey of over 4,000  business leaders across several key global markets including China and India. From the report, only 16% of businesses use digital marketing agencies and a mere 11% rely on creative advertising agencies.

The report carries several insights on how marketers and their partners can bring greater focus to digital transformation as well as some of the pitfalls.

Keeping customer centricity at the core

The report highlights a common pitfall in digital transformation: inadequate customer-centricity. Nearly 70% of business leaders believe most transformation projects are too internally focused, prioritising technology over customer value.

• 66% of respondents said staying in tune with consumer demand is more important than focusing on transformation for its own sake.
• 80% admitted transformation projects would have been more successful with a better understanding of customer experience and touchpoints.
• 76% said digital projects often fail to align with customer needs due to insufficient research at the outset.

Customer centricity at the very outset, and paying attention to resolving currently existing friction points, is likely to lead to better outcomes.

Brand identity under threat

Digital transformation typically upends several of the existing channels of communication between brands and their audience.

• 55% of respondents fear losing brand identity during transformation.
• 57% believe brand storytelling has been undermined by digital initiatives.
• 62% said maintaining brand consistency across multiple channels has become increasingly difficult.
• 73% feel businesses lack the vision to fully capitalise on new and emerging channels.
• 77% admitted they must work harder to differentiate their brand in a market where consumer experiences are becoming increasingly similar.

Naomi Troni, global CMO at VML, warns against letting technology overshadow brand values. “Digital transformation is not just about technology—it’s about transforming the entire business, including the brand,” Troni said. “Too often, companies lose sight of the core values that define their identity while getting distracted by technical details. To sustain and reinforce your brand, these values must be woven into every aspect of the transformation.”

Troni added that aligning digital strategy with brand purpose, delivering consistent brand experiences across all touchpoints, and empowering employees as brand ambassadors are critical to success.

Agencies must step up

While IT firms and AI companies dominate transformation projects, agencies have a clear opportunity to position themselves as indispensable partners.

The report found:

64% of projects begin without a clear roadmap or end goal.
56% of respondents believe senior leaders fail to support transformation adequately.
76% say a lack of strategic clarity wastes resources.

Despite these challenges, 81% of businesses use external partners for transformation, working with an average of three partners per project. With their expertise in customer experience and brand integrity, agencies are well-positioned to fill the gaps that IT and AI firms may overlook.

Aadit Bimbhet, regional commerce director for VML APAC said, “The success of any transformation programme is not just determined by strategy or technology—it hinges on selecting the right external partners. The right partner brings not only expertise but also the resilience and adaptability needed to navigate unforeseen challenges, ensuring that your objectives remain on track despite evolving market conditions and internal complexities.”