LONDON — In a sharp departure from the tech-first fervor of recent years, Europe’s top marketing executives are making branding their number one priority for 2026.
While the global business community remains locked in a heated debate over the costs and merits of artificial intelligence, a new report from McKinsey & Co. reveals that Chief Marketing Officers (CMOs) are returning to the “bedrock” of traditional marketing: trust, emotional connection, and long-term brand building.
The State of Marketing Europe 2026 report, based on a survey of 500 marketing leaders across the UK, France, Germany, Italy, and Spain, suggests a “moment of reckoning” for the industry.
Despite the ubiquitous headlines surrounding Generative AI (GenAI), the technology plummeted to 17th place out of 20 surveyed priorities for the coming year. Influencers and social media strategies fared even worse, landing at the bottom of the list.
The AI Paradox
The pivot toward branding comes as many organizations struggle to move AI out of the experimental phase. McKinsey found that 94% of European marketing departments have yet to achieve “GenAI maturity,” citing cautious leadership, a lack of technical know-how, and fragmented, small-scale initiatives as primary roadblocks.
However, the 6% of leaders who have successfully integrated the technology are seeing significant returns. These “mature” users reported efficiency gains of 22%—savings that are frequently being funneled back into growth and creative exploration. McKinsey estimates that, if fully harnessed, AI has the potential to drive $463 billion in marketing productivity globally.
“CMOs are rediscovering that brand is not a relic but the bedrock of resilience,” the report stated. “As tools get faster, the fundamentals matter more: trust and emotional connection become the anchor that gives customers clarity.”
Three Pillars for 2026
The report identifies three major themes that will define the European marketing landscape in 2026:
Be Trusted: In an era of content saturation and economic uncertainty, CMOs are shifting away from short-term “activations” toward building long-term equity. Marketers plan to invest heavily in “distinctiveness” and creativity to foster a sense of security for consumers.
Be Effective: Optimism is high, with 72% of CMOs planning to increase their budgets relative to sales—a significant jump from the 49% who did so in the previous year. However, this comes with strings attached: leaders are under immense pressure to prove Return on Investment (ROI) and integrate marketing more closely with sales and customer experience.
Be Bold: McKinsey warns that European brands risk falling behind global competitors if they do not bridge the AI gap. The report urges a shift toward “agentic AI”—systems capable of taking independent action—and notes that scaling personalization is “unlikely to be feasible” without deep tech integration.
A Return to Proven Levers
The shift highlights a growing belief that while AI can optimize tasks, it cannot replace the human element of storytelling. “The role of brands is shifting from providing functional benefits to fostering emotional relevance,” the report concluded.
As 2026 approaches, the message from Europe’s marketing elite is clear: the most sophisticated algorithms in the world cannot save a brand that lacks a foundation of trust.
