The IPA has got some advice for agencies about what clients value from agencies, and it doesn’t seem to be a “core creative idea,” which was joint 10th on the list with 73% saying it’s important. AI, however, is right at the top, with 90% of marketers saying AI skills are either critical or very important in both creative and media agencies.
Out of 200 clients surveyed, 83% want “stretch and growth thinking,” but only 48% think agencies are delivering it. There was also a gap between the clients who wanted to have their briefs and assumptions challenged (77%) and the 43% who said their agencies dare to do this.
What else are marketers looking for? These clients were not admitting to prioritising faster and cheaper; instead say they want strategic expertise (80%), quality production (83%) and specialist knowledge of key channels (79%). Conversely the growth of in-housing is, they said, about cost, speed, control and integration.
When it comes to remuneration, agencies will be pleased to hear that two thirds of clients think they are undervaluing themselves. The top preferred alternative (at 54%) is an outcome-based model – one that agencies have long been calling for but find it hard to put into practice. Clients (82%) also want agencies to help them “get the customer heard at board level” which is quite an ask.
The study (with Tracksuit) surveyed clients in charge of marketing budgets of between £1m and £250m. There are five recommendations for agencies:
- Create better stories to reframe agency value
- Promote the power of creative expertise
- Package and promote critical thinking
- Influence board level decision making
- Orientate the agency and refocus remuneration around that value
Marcos Angelides, chair of the IPA commercial leadership group and Publicis Media’s MD of L’Oréal Lab & head of AI, said: “Clients want agencies to push their thinking further, challenge assumptions and bring new perspectives to the table. To do that effectively, agencies need to combine creativity and expertise with robust data and insight that guarantees competitive advantage.”
Ed Palmer, IPA director of value, says: “Agencies should take heart in the value marketers attach to the creativity, challenge and strategic rigour that agencies are uniquely placed to deliver. But there’s work to be done to ensure that agencies deliver what clients truly value in them, and that that value is recognised and compensated accordingly.”
