The World Federation of Advertisers repeats a survey on client-agency relationships last conducted in 2018. And the results are positive.
Chief marketing officers’ perception of value provided by their agency partners is at the highest level in over a decade.
The findings come from the World Federation of Advertisers (WFA) and The Observatory International’s latest survey on the relationship between clients and agencies. It’s part of a study that has been conducted every four years since 2011.
It found that advertisers feel more positive about the value exchange with their agencies. The portion of respondents agreeing ‘most strongly’ with the statement “I feel that I am getting value for money from my agencies” grew five percentage points since the last study in 2018, to 17%. Compared to the WFA’s first such study in 2011, overall value perceptions – those who ‘agree somewhat’ or ‘agree strongly’ – are up 19 points.
However, media agencies have the most to prove to clients when it comes to value. Within that sector, 5% of marketers ‘strongly disagree’ with the idea that they are getting good value. Anecdotal suggestions appear to indicate that a lack of original thinking and a habit of rolling out the same solutions year after year has led some respondents to question overall value.
Meanwhile, nearly half of respondents still have concerns over the lack of transparency with their agencies, with the highest degree of concern again affecting media (11%).
The study is based on responses from 200 senior executives, mostly in marketing procurement roles, representing 84 companies, with a total global annual ad spend of more than $136bn.
When it comes to remuneration, the survey found an ongoing trend for more payment terms based on labor and performance, while arrangements based on labor and FTE are still dropping back. Performance deals were up from 9% in 2011 to 22% currently; FTE set-ups were down 54% points to 33% since 2011.
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