
McKinsey & Company, in its State of Marketing Europe 2026 report, has published a compelling vision of the trends that will shape the future of marketing in Europe.
With the participation of more than 500 senior marketing leaders from key countries such as France, Germany, Italy, Spain and the United Kingdom, the report highlights a clear evolution in companies’ priorities for 2026.
The main conclusion is a significant change in marketing strategy : branding has become the number one priority, surpassing even areas as relevant as performance marketing, investments in martech technology and the growing trend towards generative artificial intelligence.
From tactical to strategic
The report underscores that, over the past three years, performance marketing models have lost effectiveness due to increased media volatility and overexposure to paid acquisition channels. Tactical campaigns that relied on immediate and measurable returns have ceased to generate the expected impact, and the costs associated with media and digital traffic have skyrocketed, leading to a crisis in the sustainability of these models.
In this context, companies face a new reality: their only stable resource for growth is the strength of their brand .
McKinsey points out that organizations with a clear brand strategy achieve a long-term return on investment 20% to 30% higher than those without this solid foundation. Market volatility and fluctuating costs have demonstrated that brands with purpose and meaning, capable of connecting emotionally with consumers, are the ones that manage to withstand the storm and, in many cases, thrive.
Branding as a strategic discipline
In this report, branding is redefined as a strategic discipline that goes beyond logo design or advertising campaigns. McKinsey describes it as a comprehensive system, encompassing everything from meaning and emotional differentiation to cultural relevance and trust. Brands that master this holistic approach to branding are those that maintain a constant dialogue with their audiences, evolve their identity adaptively, and lead with clarity and purpose.
The most relevant aspect of this shift in perspective is that AI and technology, while still valuable tools, cannot be seen as the core of strategy. Although artificial intelligence has great potential to automate tasks, personalize experiences, and analyze data, it still cannot replace the emotional connection that a strong brand establishes with its consumers. The brand, with its values and its ability to build trust, remains the most powerful lever for sustainable growth.
Back to basics
As marketing as a whole faces increasing challenges related to information overload, media fragmentation, and growing distrust of brands, it becomes clear that 2026 will be a year of returning to the fundamentals of branding. This “return to the essentials” implies a return to the roots of what truly builds lasting relationships between brands and consumers: meaning, purpose, identity, trust, and emotional connection .
Companies that understand this paradigm shift, those that prioritize strengthening their brand as a strategic asset, not only gain in terms of recognition but also manage to build long-term customer loyalty. In short, brands that don’t focus on their purpose and don’t build their identity in a meaningful way will be at a considerable competitive disadvantage .
The influence of technology
McKinsey also emphasizes that, while technology and artificial intelligence will remain crucial tools, their role is to support the branding process, not replace it. In this sense, technology and AI are seen as tools to enhance brand interaction with the consumer, personalize the experience, and optimize operational efficiency. However, the essence of the brand —its ability to forge a genuine connection—remains the primary force driving its success.
The report reveals that, despite the hype surrounding artificial intelligence, 94% of European organizations have not yet reached significant maturity in using AI for marketing. This means that, while technology is important, the foundation upon which brands must be built remains deeply human and emotional.
The future of branding
According to McKinsey, the brands of the future will be those that master “interactive branding ,” an approach based on continuous dialogue with consumers, adaptability of brand identity, and clear and meaningful leadership. Brands that maintain authentic, relevant, and consistent leadership, capable of creating a shared narrative with their audiences, will be the leaders in the next decade.
In this regard, McKinsey offers a clear vision: brands that know how to integrate technology and AI as tools that support interaction and experience, without losing sight of purpose and emotion, will be the most successful. Media tactics and artificial intelligence, however powerful, should complement a well-defined and authentic branding strategy, not replace it.
What does this mean for the future of brands?
The McKinsey report clearly shows that brands are not simply a combination of products and services, but have become fundamental strategic assets for the long-term success of companies. Branding, focused on purpose, emotional differentiation, and trust, has become the top priority for marketing leaders in Europe .
This shift towards branding as a strategic asset reinforces the vision we share at TOTEM Branding. As the volatility of the digital and media environment increases, brands with a clear purpose and a solid strategy are the ones that not only survive but thrive. The future of brands lies in the emotions they generate, the trust they build, and the authenticity they project .
How does TOTEM Branding fit into this new paradigm?
At TOTEM, we firmly believe in this shift towards the essential. Our mission has always been to help companies build brands with soul, relevance, and purpose. In this market saturated with tactics and technological tools, we continue to believe that branding is the foundation of everything— the way a brand connects, inspires, and generates lasting value for its audiences.
We fully align with the vision of McKinsey and the CMOs.
The brands of the future are those that maintain a constant dialogue, adapt to the evolving needs of their consumers, and lead with clarity and purpose. Technology and AI are crucial, but they can only be tools that amplify the brand’s purpose and vision .
While technology and AI continue to play a key role, the future belongs to brands that focus on what makes them truly unique : their identity, their purpose, and the emotional connection they create with their audiences.
And that’s where TOTEM Branding comes in, guiding brands into the future with a coherent, human, and deeply connected strategy.
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