“Advertisers are ambivalent about the future of their agency relationships, preferring project-based compensation during uncertain economic times,” said Marissa Gluck, Jupiter senior analyst. “As advertisers respond to a dismal economic climate by slashing their marketing budgets, it is not surprising that their approach to agency compensation reflects such austerity. Agencies must start to rethink pricing, structure, and most important, how they market themselves.”
Although 34% of advertisers believe their agency relationship will improve as those agencies enhance their service offerings, the remaining 66% are less than convinced.
According to a November 2001 Jupiter Executive Survey, 21% of advertisers are unsure how their agency relationship will evolve; 27% want to bring services in-house and 18% feel their agency relationship is ‘transient’ – based on cost rather than quality of service, according to Jupiter.
