Strong Client/Agency Relationships [INSIGHT]

Clients and their agencies have strong relationships but there is significant dissatisfaction about the quality of the briefing process and compensation agreements according to the ANA’s (Association of National Advertisers) survey report “Enhancing Client/Agency Relations 2015.”

The study of marketers and agencies, which took place in Q1 2015, indicates that a clearer agency assignment process is needed. Just 27 percent of agencies, versus 58 percent of clients, reported that clients provide clear assignment briefs. Additionally, clients and agencies were not in agreement that the client approval process worked well – 54 percent of clients were satisfied with their current arrangement versus 36 percent of agencies. Compensation, typically a contentious issue, indicates only 40 percent of agencies believed it was fair compared with 72 percent of clients.

Other key findings from the study included:

•     Clients and agencies are lukewarm on the value procurement adds to client/agency relationships.  Less than half of clients (47 percent) felt that procurement adds value, while only 10 percent of agencies agree.
•     Clients (54 percent) and agencies (47 percent) agree that in-house client resources are increasingly becoming a realistic option for clients.
•     Clients and agencies reported that agencies work well with other agencies, 65% of clients concur versus a very robust 88% of agencies.
•     Agency talent remains an issue. Only 56% of clients believed that agencies have the right talent to meet client needs over the next two years. Agencies are slightly more bullish at 64%.
•     Despite their concerns the majority of both clients (87 percent), and agencies (86 percent) felt that the agency is a valued business partner that plays an important role in the client’s business strategy, and driving business results.

Bob Liodice, President and CEO of the ANA commented “We are pleased to see that at the core, client/agency relationships are sound. Having that strong foundation is a cause for optimism. However, there are disturbing legacy issues that continue to plague the partnership that have been further complicated by blossoming transparency concerns. The ANA is committed to making tangible improvements and will be working in partnership with the 4As to actively address these issues.”