Advertisers put media agencies top for value

Media agencies are considered to be more honourable and professional and provide better value for money than creative agencies, according to a survey of advertisers.

Media agencies are considered to be more honourable and

professional and provide better value for money than creative agencies,

according to a survey of advertisers.



The research, conducted by the Media Audits consultancy among 60

advertisers who spend a total of pounds 750 million, found that media

companies have become advertisers’ most valued suppliers.



Media agencies scored 4.7 out of a maximum of six when clients were

asked to rank suppliers in terms of their professionalism and integrity.

Creative agencies scored 4.4, followed by 3.9 for PR companies, 3.7 for

direct marketing agencies and 3.4 for sales promotion agencies. In fact,

when it comes to integrity, 71 per cent of advertisers say they now have

sufficient transparency in their dealings with their media agency,

illustrating a healthy level of trust.



And media scored even higher when it came to value for money, with 4.8

out of six, compared with 3.9 for creative agencies, 3.8 for PR and DM

agencies and 3.4 for sales promotion companies. In total, 76 per cent of

clients felt they received value for money from their media agency.



However, this seems less surprising when set against the average

commission levels clients pay their media companies. Four out of ten

clients pay agencies 2.5 per cent commission or less. A third pay

between 2.6 per cent and 3.5 per cent, while only one in five pays more

than 4 per cent.



Advertisers are increasingly keen to link agency remuneration to

performance, with 36 per cent of clients already employing this system

and a further 55 per cent willing to consider doing so.



Lynda Graham, the managing director of Media Audits, said the findings

underline the broader role that media agencies are now taking, and that

those agencies providing real added value are being rewarded

accordingly.



’The whole accountability of media makes it more results-driven,’ Graham

explained. ’And a lot of clients are getting very good advice from

agencies on their communications in totality. They are driving

innovation for clients.’



In tandem with this development, there has been a move towards separate

contracts for creative and media agencies, with eight out of ten

advertisers opting for separate remuneration contracts.



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