2007 a busy year for client-agency relationship reviews

In an interesting article published 7 January, Adweek reports their research findings confirming perceptions that 2007 was indeed a busy year for client-agency relationship reviews.

According to Adweek's analysis:

• A record $27.5b of advertising business moved or went into review in 2007, eclipsing the previous record of $22b in 2006

• The number of clients that switched agencies was up 20% from 128 in 2006 to 153 in 2007

• The five most active categories reviewed, were:

Computers / Software $5.2b (eg the Dell global marketing services review)

Telecommunications $4.7b (eg the AT&T media account and the SprintNextel creative account)

Packaged Goods $3.3b (eg the J&J global media review)

Automotive $2.6b (eg the Hyundai/Kia media buying & planning account)

Retail $2.2b (eg the Sears Holdings media review).

Retail was the only sector of the five above to register a year-to-year decline, with $2.2b reviewed in 2007, down from $3.2b in 2006.

And more media-only business went under review ($12b) than creative-only ($8.1b).

Robert Passikoff of Brand Keys offer the following comments on why 2007 was a particularly active period:

• The increasing complexity of the media landscape is driving change
• Clients are placing greater pressure on their agencies to differentiate their brand better than the competitors
• Clients are placing greater demands on media agencies to:

> provide better data about the impact of the ads they buy
> deliver deeper insights into how consumers are using traditional and emerging media
> demonstrate the cost-effectiveness of media buys
> prove that placement of ads is literally engaging consumers

Source: Adweek, 7 January 2008

Author: Viji Ratnam