Why more agency reviews may be coming

A rising number of brands are unsatisfied with their agencies, according to a new survey, suggesting continued turnover in the months to come. The findings come from the fifth annual Marketing Relationship Survey, published Friday morning, which was conducted by Setup, an ad industry matchmaking firm that connects brands with agencies. See our 2023 Marketers of the Year here The full report—which surveyed a total of 300 people at various agencies and brands—shows several agency-client disparities. Perhaps most alarming for agencies: 55% of brand-side respondents said they are considering a change of agency in the next six months, marking a significant year-over-year jump and an intensification of trends that Setup previously identified in recent years. Last winter, 38% of advertisers contacted for the Marketing Relationship Survey said they were then contemplating such a move, while in 2021, that figure was just 30%—suggesting the number of brands thinking about imminently ditching their agency partners has nearly doubled in just two years. The identity of respondents does not necessarily remain the same from year to year; Setup surveyed 306 people last year. This year, 68% were from clients and 32% from agencies, compared with 70% and 30% in 2022. “We were floored this year,” said Joe Koufman, Setup’s founder and CEO, of the new report’s revelations, suggesting that the data may signal “a more robust agency review season in the coming year.” Also read: Agency news you need to know this week Setup also asked respondents why agency-client relationships end, and found some major disparities in the two sides’ thinking. For example, among the nine primary factors given to respondents to rank, those affiliated with brands said “dissatisfaction with value” was the top reason why they severed ties with an agency, while “dissatisfaction with delivery” followed closely behind in second place. Conversely, agency-side participants believed those explanations were the two least significant drivers of losing clients, instead suggesting that budget cuts and changes in leadership—ranked by brands at No. 4 and No. 8, respectively—were the top two considerations. ‹ › × (Click image to enlarge) Credit: SetUp “Agencies need to get their acts together to improve their value, delivery and strategic approach, which were all top reasons clients cited for ending relationships with agencies,” Koufman said. But it’s not all doom and gloom for marketers. While the survey saw a decline in satisfaction with the value that agencies offer their clients, the reception of agencies’ strategic approaches improved overall when compared to Setup’s 2022 findings. Their conclusion: “Agencies are bringing strong strategies to the table, but charging too much for it in the clients’ eyes,” the report reads. In addition, this year’s Marketing Relationship Survey showed that chemistry and professionalism are the two more important aspects for brands looking to select a new agency partner, while content creation and video was the agency service that saw the highest year-over-year increase in demand from clients. The survey drew on responses from a mix of representatives from both traditional full-service and strictly digital agencies, 61% of whom work for a shop with between 500 and 10,000 employees. Agency respondents included Publicis Groupe/Razorfish, Sagepath Reply and Morrison Agency, according to Setup. Representation from the client side included those from business-to-business brands and business-to-consumer brands, the bulk of whom hold director-level or higher positions at companies including Sam’s Club, Great Clips, Intuit Mailchimp, MGM Studios and Invesco. Over 90% of brand-side respondents identified themselves as having been involved in a past agency selection process.

Why more agency reviews may be coming

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