Client-agency relationship tenure improvements: ANA and 4As

Despite a seemingly endless barrage of reviews, average client-agency relationship tenure has improved significantly in recent years, according to a study released today by the Association of National Advertisers (ANA) and 4As. The average client-agency relationship now lasts roughly seven years, according to the report, which is based on separate surveys of 106 ANA marketers and 67 4As members regarding their agency-of-record partnerships. That’s more than a two-fold increase from a 2016 report by R3, which found the industry average tenure was just 3.2 years. The new ANA/4As findings follow a flurry of reviews, some of which have impacted the industry’s longest-running client-agency relationships. Southwest Airlines, which has worked with GSD&M since 1981, recently added Leo Chicago to its creative agency roster. Meanwhile, earlier this year, Geico initiated a review to expand its roster beyond The Martin Agency, which has managed the insurance giant’s creative business for 31 years. Geico has since paused that search. Matt Kasindorf, senior VP of the business intelligence and insight group for the 4As, said the trade groups carried out their studies independently to produce the most concrete findings. The surveys, conducted between August and September 2024, do not reflect agency changes made since the beginning of this year and are focused solely on AOR relationships, not accounting for roster shifts or additions such as Southwest. Client-agency relationship tenure by agency type Experiential agencies have the longest relationships, averaging 10 years, according to the study. Full-service shops followed closely behind at 7.3 years—a sign of marketers’ growing reliance on integrated services, ANA and 4As executives told Ad Age. (Full-service agencies represented the majority—93%—of 4As respondents.) Media-only relationships were less stable in both the 4As and ANA studies. These partnerships tend to face more scrutiny due to the expectation of measurable performance and results, said Greg Wright, senior VP of brand and media at the ANA. The complexity of the media landscape—especially with elements such as programmatic buying and AI—makes it more likely for clients to switch agencies if performance benchmarks aren’t met, Wright added. Media agencies are also more likely to undergo mandated reviews because “the dollar volume is so high,” said Kasindorf. Procurement executives may reason, “If it’s that kind of money, we need to be doing our mandated reviews,” he added. Other research: Most brands expect to change agency compensation models within the next three years Perhaps unsurprisingly, clients without mandatory review periods—roughly 60% of respondents—report significantly longer relationships (8.1 years) than those who hold frequent pitches (as short as 3.8 years). These marketers also sidestep the steep transition costs, avoiding the average $408,500 required for an agency search and account review, according to previous findings from the ANA and 4As. “If clients want to get the most value out of their agency, a longer-term approach” is quite effective, Wright said. More: Agencies and brands struggle to define value in their partnerships The research also comes amid broad economic uncertainty brought on by President Donald Trump’s tariffs, which have forced marketers to cut costs, including by spending less on agency partners. Wright and Kasindorf said economic volatility could give brands and agencies the opportunity to reevaluate—and potentially continue—their relationships, but added that any shifts would likely favor full-service shops and hurt specialists. “I think we are moving towards a bit more consolidation on the client-side, as far as using fewer agencies and having smaller rosters, or relying on agencies to fill more of the capabilities than they previously did,” said Wright. Also read: Tracking the ad industry’s response to the economy Data-driven Marketing Playbook: Join industry leaders on May 22 to explore how data can drive marketing strategies, optimize media buying and improve customer engagement. Learn more here.

Client-agency relationship tenure is improving—but media accounts are less stable

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