The pace of agency review activity, already more hectic in recent years, is gathering even more momentum.
A new study has found that nearly 75% of major multinationals are reviewing their current agency arrangements, looking at whether they have the right mix of agencies and capabilities on their rosters.
The study, titled “The Future of Agency Rosters” is from the WFA and The Observatory International and has found that many clients have concluded that their current roster set up is not working effectively. Based on a scale of 1 to 10 clients gave an average effectiveness rating for their agency roster of just 5.7.
Agencies aren’t thrilled with the effectiveness of current rosters either, per the study. The average effectiveness rating from the agency side was an even lower 5.2 out of 10.
The findings are based on responses from 50 multinational marketers representing total global ad spend in excess of $69 billion.
Twenty-six agency representatives contributed, with more than 50% in global/regional roles and the balance evenly spread across the globe.
The current dominant model of agency management is “multiple agencies managed individually by marketing” (81%). That’s followed by “integrated lead agency” (44%) and “network agency with specialists from same holding company” (39%).
However, many advertisers use a variety of core models across their operations, underlining the complexities of developing “fit-for-purpose” roster architectures around the globe, per the report.
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