Shrinking media budgets, aggressive growth goals and ever-complex marketing needs are causing a shift in the brand-agency relationship.
In their bid for self-preservation, brands are streamlining spending and in-housing capabilities.
Brands’ concerns with agency partners range from the need for better design and creative (33% of respondents), different pricing models (30%) to more flexible working models (25%), according to a study conducted by the Society of Digital Agencies and Forrester Research.
The study further surveyed client-side marketers about why they terminate their agency partners.
A third of respondents (33%) said they terminated over pricing, 19% said it was over new management at the brand’s organization and 16% cited cost overrun.
Brands that don’t want to completely part from their agency can partially in-house operations while still leaning on external agency counterparts.
In fact, most in-house agencies (85%) still outsource functions to external providers, according to 2018 research from the In-House Agency Forum, so agencies don’t need to necessarily view it as a threat to their existence. Read the rest at eMarketer.