Marketing Relationship Survey: The Agency-Client Relationship in 2020
Setup exists to empower and connect marketers which enables us to have a unique perspective on the agency-client relationship. As “marketing matchmakers,” we conduct an annual marketing relationship survey where we ask marketing leaders about both the brand and agency experience to help us understand their interactions and thought processes.
In late-2019, we targeted senior-level marketers via email, LinkedIn, and social media channels and heard back from more than 230 marketing leaders (62% on the client-side and 38% on the agency-side).
Company responses included feedback from marketing leaders at Kimberly-Clark, Panasonic, Loews Hotel, The Coca-Cola Company, PODS, PwC, The Home Depot, Red Bull, Inspire Brands (Arby’s, Buffalo Wild Wings, Sonic, and Jimmy John’s), Georgia-Pacific, The Hershey Company, InterContinental Hotels Group, Conair, and Church’s Chicken. The majority of client respondents were marketing leaders (76% Director-level or above) with big brands (54% with over 1,000 employees).
Here are some of the findings about the agency selection process, agency relationships, and marketing spending from the CLIENT PERSPECTIVE:
Agency Selection Process:
90% of the respondents said that the agency selection process is complex
86% of the respondents considered more than one agency during their selection process
71% of respondents agree that it was time-consuming
69% of respondents suggested a group of specialist marketing agencies makes more sense than one generalist agency
Top factors in the agency selection process (in order):
Agency understanding of client’s business
Creativity
Specialized capabilities
Chemistry
Bottom factors in the agency selection process (in order):
Agency awards
Agency size
Agency marketing
Proximity/location
Agency Relationships:
1 in 3 respondents said they planned to review their agency partners in the next three months
1 in 5 respondents said they feel stuck with an agency partner
3 in 4 respondents said they would work with their primary agency partner again if they moved companies, but only 28% called themselves “loyal” to their primary agency partner
While it is not an official NPS (Net Promoter Score), the clients gave their primary agency an average of 7.27 on the question: How likely are you to recommend your primary agency to a friend or colleague? This is on the border of the Passive/Detractor line - meaning the client is not an advocate of their agency partner.
Marketing Spending:
Top areas of spending for 2020
(in order - most to least):
Video
Content
Website
Branding/Creative
SEO
Digital Media
Mobile
Bottom areas of spending for 2020
(in order - least to most):
Traditional Media
Multicultural
Production (TV, radio, print, etc.)
Emerging Tech
PR
Market Research
Experiential
The agency respondents were mostly senior leaders as well (44%) and business development executives (31%) from smaller agencies (91% under 100 employees). 42% were with Full Service (traditional and digital capabilities), 33% were Digitally focused, and 24% consider themselves Specialist Agencies. Of the groups who identified as agencies, 53% of the companies service 10-25 clients, 22% service 26-100, 18% service 1-10, and 7% service over 100 clients.
Here are some of the insights regarding challenges from the AGENCY PERSPECTIVE:
Biggest challenges for agencies (in order):
Talent acquisition
Scaling for projects
Adopting new technology
Project scoping
Client retention
Consistency of work output
Business development challenges for agencies (in order):
BD bandwidth
Outbound BD efforts
BD process
Growing existing accounts
Marketing the agency
Other insights:
27% of agency revenue comes from the largest client
33% of leads for agencies come from outbound business development efforts
JUXTAPOSITION between the perspective of Clients and Agencies:
75% of agencies think that the number one reason that partnerships with clients end are due to budget cuts, but only 24% of clients say that budget cuts were the reason agency relationships ended.
10% of agencies think that challenging the client is important while 62% of clients say they want to be challenged.
The annual Marketing Relationship Survey highlights how brands and agencies can communicate more efficiently. Setup is honored to live in the in-between to help marketers better understand one another.
Read the entire report for 2019-20 here and then check out how the Marketing Relationship Survey from 2018 compares and how marketing leaders’ prorities shift!
Navigating the marketing industry often leads professionals to stick to either the Agency or Brand side, potentially limiting their growth opportunities. In our series, we delve into the experiences of marketers who have made the jump from one side to the other. Building on our previous exploration of transitioning from Client to Agency-side marketing, this time we interviewed Allison Turner, who has transitioned from Agency roles to becoming the Marketing Copy Manager at Floor & Decor on the Client side.
This journey highlights how working on both sides can enhance a marketer's skills and adaptability, making them more equipped to handle diverse tasks and challenges.