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:
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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.
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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.
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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
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