Marketers dumped their agencies in record numbers last year and the mass exodus isn't letting up. Here's what agencies can do to stem the tide.
If you work at an ad agency and started the New Year by asking your partner, "Where'd our clients go?" you weren't alone.
2007 was officially marked as the Year of Client's Discontent, wherein agencies saw record numbers of clients flee from Agency X in an attempt to find better service, better campaigns and a better investment.
An AdWeek analysis showed that even though a record amount of cash went into play last year (an estimated $27.5 billion, up from $22 billion in 2005), there was a growing amount of itchy-feet among clients. The AdWeek data suggested movement from large accounts, with more than $20 million in billing, was up 20 percent from the previous year.
What's driving the itchy-feet syndrome among clients? A confluence of several events, analysts say. The pace of business circa 2008, and high demand for integrated campaigns puts heavy pressure on agencies to "move the needle" quickly or get the boot; the looming economic recession has clients gripping every ad dollar and leaving them feeling more entitled to top-end service; and during these crunch times, the large agencies can overlook their smaller accounts, sticking clients with B-Team talent not seasoned enough to deliver the emotion-inducing campaigns brands require nowadays.
"Clients move around when there's an absence of return on their investment," says Robert Passikoff, president of Brand Keys in New York. "It's partly the same ol' thing, 'blame the agency, blame the agency,' but in today's market, it's more than that. There's a lack of well-crafted brand strategies, and an even bigger inability to measure the success or failures of those strategies across the board."
From the ad agency perspective, keep in mind the silver lining: Even though clients are playing musical chairs, they're still showing up, and putting dollars into play.