AIR FOR AGENCIES - Advertiser Perceptions...AIR FOR AGENCIES WAVE 1 REPORT HIGHLIGHTS advertiserperceptions.com What Advertisers Think About Their Agency Relationship To what extent

AIR FOR AGENCIESWave 1, Fall 2016

Report Highlights

AIR FOR AGENCIES WAVE 1 REPORT HIGHLIGHTS

ABOUT THE ADVERTISER INTELLIGENCE REPORT FOR AGENCIES (AFA)

For over a decade, Advertiser Perceptions has specialized in determining what marketers think of over 500 leading media brands - their plans, opinions and motivations. Through our Advertiser Intelligence Report (AIR) we provide our blue-chip clients with research based actionable insights helping them to improve advertiser satisfaction and substantially increase sales.

Utilizing our proven method and panel of leading brand marketers, we have expanded our focus to deliver advertising agencies with the perceptions of top-level decision makers that influence agency selection and retention. AFA supplies actionable data-driven insights and the guidance necessary for improving marketer perceptions of your agency to strengthen your brand value, improve client retention, increase new business and gain a competitive advantage.

What follows are a series of general market highlights from the Advertiser Intelligence Report for Agencies. In the full report, agencies receive a complete series of insights detailing specifically what advertisers think of their agency, and their competition.

What AFA Delivers Every Six Months...• Interviews with more than 400 leading advertisers who make or substantially influence their company’s decisions to review and determine new agency relationships

• Rankings of agencies most likely to be considered by advertisers in the next 12 months• Criteria that drives decisions to consider an agency (what’s important)• Perceptions of 100 top agencies across 25 factors including:

- Delivering results and meeting objectives- Creativity and originality- Service and attention to client needs- Cost of doing business- Advantages gained through scale

• Advertisers’ likelihood to review current agency in the next 12 months• Measured agencies competitive intelligence, positioning and tracking• Specific advertiser attitudes toward their agencies

advertiserperceptions.com

SOURCE: © 2016 Advertiser Perceptions AIR For Agencies Report, Wave 1

MORE THAN100 AGENCIES

MEASURED

AIR FOR AGENCIES WAVE 1 REPORT HIGHLIGHTSadvertiserperceptions.com

What Advertisers Think About Their Agency Relationship To what extent do you agree with the following statements about the role of your advertising agency(ies)?

Percent of respondents indicating they mostly / strongly agree

More than Half of Advertisers are Likely to Review Their Agency RelationsipHow likely is your company, in the next 12 months, to review your relationship with your agency?

Percent of respondents indicating they are likely to review agency in next 12 months

Digital Media Search Creative

Our advertising agencies are a key to our success.

The availability of campaign and audience analyticsin facilitating decision - making is critical.

My company shares the meaningful KPI's with ouragency(ies) in order for them to be successful.

Creativity is the most important criteria thatwe look for from ad agencies.

Ad agencies are becoming more andmore important to my company.

We want to be more innovative and experiment with newadvertising solutions but I am held back by my company.

57% 60% 62% 62%

How Does an Agency Win / Retain Business?You will be reviewed. More than half of major advertisers in the U.S. say they are likely to review their current agency(ies) within the next 12 months. To ensure future success, it's critical to understand the specific perceptions of your agency and what drives their decision to work with you... or not.

62% 60%

54% 53% 53% 52%


Concern and Confusion Exists Regarding Future of Existing Agency ModelFuture agency viability is unclear. Nearly half of major advertisers in the U.S. feel somewhat to very strongly that the industry is changing so fast, it's unclear how ad agencies will be viable in the future. That opinion is held highest among VP levels and above. Add to that the challenge coming from consultants like IBM, Deloitte and Accenture, who are now being very highly considered alternatives to more typical digital agencies.

The industry is changing so fast right now, it's unclearhow ad agencies will be viable in the future.

44%

41%

46%

To what extent do you agree with the following statements about the role of your advertising agency(ies)?Percent of respondents indicating they mostly / strongly agree

New Players on the Traditional Agency TurfLeading Digital Agencies Advertisers Would Consider in Next 12 Months

?


49%

SOURCE: © 2016 Advertiser Perceptions AIR For Agencies Report, Wave 1 Logos are property of their respective owners.

Trust and Transparency Continues to Be an Issue with AdvertisersTo what extent do you agree with the following statements about the role of your advertising agency(ies)?


I'm losing trust in my advertising agency(ies)due to transparency issues.

My advertising agency(ies) is not open andtransparent on costs.

50%

35%

Advertisers Are Not Transparent with Agencies Regarding Important KPIsTo what extent do you agree with the following statements about the role of your advertising agency(ies)?


My company does not share meaningful KPI's withour agency(ies) in order for them to be successful.

We do not share our (sales) data with our agency(ies).

41%46%

Agencies Must be Transparent with ClientsOur research confirms trust and transparency headlines over the past several months have had an effect on marketers. As such, Agencies should commit to and communicate processes that demonstrate clear, honest and timely exchange of information with clients, or risk losing a good portion of their business. Conversely, Marketers must be prepared to provide agencies with metrics, KPIs and other essential, internal data to Agencies to enable them to better deliver on client objectives. Nearly half of major advertisers say they are NOT sharing KPIs and sales data with their agencies.



Procurement

44%

Agency SearchConsultant

Advertiser Attitudes and Practices

It's no surprise that agencies are indicated as a key to advertiser success. That being said, the relationship between agency and client needs to grow stronger as the marketplace gets more complex and chaotic, with an over-abundance of media and creative choices. These relationships may also become complex as the number of prospect / client decision makers spans several departments and titles, with key selection criteria like cost, creativity, strategy, scale and others potentially conflicting within the client organization.


Agency Relationships are Becoming More Important to AdvertisersPlease tell us to what extent you agree or disagree with the following statements about

your brand or company’s advertising and the role of your advertising agencies?


Search Decisions for New Agencies Are Not Exclusive to MarketingWhich departments are involved in the decision to search for a new agency?

Percent of Respondents Indicating They Are Involved In Decision To Review

Marketing(CMO, etc.)

Our advertising agenciesare a key to my success.

62%Ad agencies are becomingmore and more importantto my company.

53%

84%

ExecutiveManagement

Relationships are becomingless important with our adagency(ies), and that isunfortunate.

37%

65%

Financial(CFO, etc.)

57% 42%


Creativity Is One of the Most Important Criteria Advertisers Seek from Their Agencies While not a surprise for creative agencies, creativity ranks high as a desired deliverable from every type of agency measured – including digital, media and search. With the proliferation of AdTech, that seems to change on a weekly if not daily basis, this has particular implications for media and search agencies. The pressure is mounting for those agencies to introduce and demonstrate more creativity in services they perform and final products they deliver – which could be their saving grace in the face of increased reliance and perceived importance of algorithms and automation.


To what extent do you agree with the following statements about the role of your advertising agency(ies)?Percent of respondents indicating they mostly / strongly agree

Creativity is the Most Important Criteria that We Look For From Ad Agencies.

53%



CONCLUSIONIn this highlights report, we’ve only shared a small sample of the insights The Advertiser Intelligence Report for Agencies (AFA) delivers. Given the full scope of the report’s perceptions, one thing is abundantly clear - the agency world is changing dramatically and the future is uncertain. In order to be successful, agencies must be agile and adapt to what prospects and clients’ want, first, by knowing and understanding advertisers’ perceptions, opinions and motivations and second, by delivering on those needs and wants that are most important to them.

AFA is the only tool that gives advertising agencies the ability to know and understand what actually drives advertiser decisions to hire and retain them. Through AFA, agencies will discover how their brand is actually perceived by prospects and current clients against a large and varied set of research-based decision drivers and how that perception measures up versus their competition.

Armed with these insights and our consultative approach, agencies are given the ability to strategically create and execute their business development, marketing communications and client retention efforts, building on where they are strong, addressing where they fall short and targeting opportunities for growth to gain a competitive advantage.

We encourage you to explore the AFA report further, by contacting us for a special briefing regarding insights specifically pertaining to your agency brand. To learn more about AFA, simply CLICK HERE.


http://advertiserperceptions.com/air-for-agencies

About Advertiser Perceptions

When it comes to gaining knowledge and clarity about what advertisers think, nothing compares to what Advertiser Perceptions delivers. We are the world leader in providing advertising industry executives with the research-based advertiser insight and guidance necessary for producing superior advertiser experiences, strengthening brands, improving advertiser satisfaction and growing business. We specialize in determining, analyzing, communicating and applying what advertisers think — their plans, opinions and motivations.

Our proprietary database and panels of marketers are large and responsive. The advertiser survey and questionnaire development process that we employ is proven and ensures optimal response. Focus and advertising industry expertise enables us to effectively analyze and accurately interpret the research that we conduct on behalf of our clients, who represent most of the largest advertising industry companies in the world.

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AIR FOR AGENCIES - Advertiser Perceptions...AIR FOR AGENCIES WAVE 1 REPORT HIGHLIGHTS advertiserperceptions.com What Advertisers Think About Their Agency Relationship To what extent