More advertisers see agencies as good value for money (though media has a lot to prove)

"Chief marketing officers' perception of value provided by their agency partners is at the highest level in over a decade. The findings come from the World Federation of Advertisers (WFA) and The Observatory International's latest survey on the relationship between clients and agencies. It's part of a study that has been conducted every four years since 2011. It found that advertisers feel more positive about the value exchange with their agencies."

"The portion of respondents agreeing 'most strongly' with the statement "I feel that I am getting value for money from my agencies" grew five percentage points since the last study in 2018, to 17%. Compared to the WFA's first such study in 2011, overall value perceptions - those who 'agree somewhat' or 'agree strongly' - are up 19 points. However, media agencies have the most to prove to clients when it comes to value."

"Within that sector, 5% of marketers 'strongly disagree' with the idea that they are getting good value. Anecdotal suggestions appear to indicate that a lack of original thinking and a habit of rolling out the same solutions year after year has led some respondents to question overall value. Meanwhile, nearly half of respondents still have concerns over the lack of transparency with their agencies, with the highest degree of concern again affecting media (11%)."

Chief marketing officers' perception of agency-provided value is at its highest level in over a decade. The portion of respondents who 'most strongly' agree they are getting value for money rose five percentage points since 2018 to 17%. Overall value perceptions (those who 'agree somewhat' or 'agree strongly') are up 19 points since 2011. Media agencies show the weakest performance, with 5% of marketers 'strongly disagreeing' they receive good value and criticisms of recycled solutions and lack of original thinking. Nearly half of respondents report concerns about agency transparency, highest in media at 11%. Remuneration is shifting toward performance-linked deals and away from FTE models, and more than 40% report significant price increases for digital and CRM services.

Read at The Drum