As an expert in the marketing industry, I have seen firsthand the evolution of agency-client relationships over the years. The traditional model of a single agency handling all aspects of a client's advertising and marketing needs is no longer the norm. Instead, clients are now seeking specialized agencies for specific skills and services, leading to a more limited and strategic approach. A prime example of this shift is Ford's decision to end their 75-year partnership with WPP and instead name BBDO as their main advertising agency, with Wieden+Kennedy as their "innovation partner". This move also involved bringing in over 100 internal vendors to handle key functions within the company.
This change reflects the growing trend of clients seeking a more focused and specialized approach from their agencies. The rise of the internet has also played a significant role in this shift. With easy access to millions of agencies around the world, clients are no longer limited to just a handful of options in their local area. This has led to increased competition and complexity in the digital marketing landscape, making it even more crucial for agencies to stand out and offer unique expertise. Gone are the days when simply adding meta tags and writing 500 words of content could guarantee success in SEO. Now, it takes a team of experts and a substantial budget to achieve similar results.
Clients no longer want an agency that can do everything; they want an agency that excels in one specific area. In today's ultra-competitive environment, having limited experience can actually give clients confidence that an agency can deliver bold and effective campaigns. A recent Forbes survey highlights the differing priorities between clients and agencies when it comes to marketing strategies. While clients place a high importance on media strategy, agencies only allocate 10% of their focus to this aspect. This is because being "strategic" is a broad term and does not provide specific guidance.
For agencies, it can be challenging to switch from creative work to planning long-term media campaigns for clients. As an agency, it is crucial to have a solid marketing strategy in place. In fact, 81% of businesses say that a marketing strategy was essential to their success during the COVID-19 pandemic, and 71% believe they would not have survived without one. As an expert, I have regular conversations with marketing leaders from various industries, which not only helps me stay on top of industry trends but also reveals common challenges faced by all marketers. If your agency lacks any of the traits mentioned above, it may be time to reevaluate your approach or have a conversation with marketing leaders. According to a recent survey, 94% of businesses plan to hire outside agencies to improve their marketing efforts as pandemic restrictions are lifted.
And 96% of those companies are willing to pay their agencies more for their services. Andre Oentoro, from Breadnbeyond, highlights the difference in success metrics between agency marketing and marketing for clients. While one-third of agencies have their own marketing teams, another third delegate this responsibility to marketing professionals who are also responsible for billing clients. However, many agencies do not track the ROI of their own marketing efforts, making it difficult to prioritize where to focus their resources. At our agency, we have found great value in participating in groups that allow us to anonymously compare our results with other agencies and access research reports on how agencies promote themselves and allocate resources at different stages of growth. This has helped us stay competitive and continuously improve our own marketing strategies.
