The €1 Billion Problem Nobody Talks About | A special Marketing Factory with WFA x EACA

Listen to the podcast episode here:

In this episode of Marketing Factories, a podcast by Effie Europe and REBORRN, Dafni Prosalika (Partner at REBORRN) welcomes two of the most senior voices in the industry, from opposite sides of the table: Charley Stoney, Chief Executive Officer of EACA (the European Association of Communications Agencies) and President of VoxComm, and Stephan Loerke, Chief Executive Officer of the WFA (World Federation of Advertisers). Between them they speak for the agencies and the advertisers: around 130,000 agency professionals across 30 countries, and over 10,000 of the world's brands.

The conversation centres on a model in flux. Both are candid that the way agencies are paid, time and materials, was never a great model, and that AI has turned it into an existential question. Stephan's view is blunt: clients no longer want to buy hours, they want to buy impact. Charley maps what is replacing the old model, from output and licensing fees to royalties and productised process, and why Europe's roughly €1 billion a year pitching habit is a waste the industry can no longer afford.

But the bigger story is a return to fundamentals. In a "sea of sameness" driven by AI, both argue that creativity becomes the real advantage, backed by 30 years of Effie data showing that the insight, the storytelling and long-term brand and agency relationships are what move a business. They also get into the tension every CMO lives with, from the roughly 60% of budgets still going to performance to the transformation fatigue that 76% of marketers admit to, plus the regulatory battles, two new Effie categories, and the burning problems each would hand to the most brilliant minds in the room.