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
’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.