Does This Mean More PR? Corporate America is questioning the return on its advertising investment, finds a study by Avidian Strategies.
The survey of 1,900 business leaders in marketing and media also reveals that 46% think advertising agencies are struggling in transitioning their business model to incorporate a more digital platform. Another 36% observe that ad agencies are making progress acquiring digital assets, but find it difficult integrating them.
Other results include:
Ad agency tenure has been declining steadily as clients continue to consolidate, with 51% declaring that they have been reducing their roster in the past three years, and 44% saying it is still too big and they plan to consolidate further. Asked what type of agencies they plan to cut back on next year, 69% mentioned digital agencies, and 48% creative agencies.
When asked what recent changes in marketing influenced them the most, 55% of clients point to growing demands for accountability as the main factor, with increased scrutiny of results by the CEO and the board; 71% point to it as the area that ad agencies need to improve most.
Most marketers would like their ad agencies to lead integration between all brand communication partners, but when asked about agencies’ ability to execute, 72% of marketers report that agencies are “inconsistent and need to improve” and 24% say “ad agencies are falling short and not doing a good job.”
Source: Avidian Strategies
Follow Scott Van Camp: @svancamp01