Agencies see change ahead as clients take more marketing in-house

As brands continue to bring marketing capabilities in-house, agencies have no choice but to adjust.

Brands like Procter & Gamble, Unilever and United Airlines are bulking up their in-house capabilities, and others are following suit. “We are now seizing back control,” P&G marketing chief Marc Pritchard declared recently. The outcome of the move could be disastrous to agencies’ bottom lines. WPP Group’s share price, for instance, is down 14 percent from the start of the year.

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RSW/US’s New Year Outlook survey found that marketers are increasingly taking work in-house and seeking out specialty shops.

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Marketers and Agencies Are Struggling to Find Top Talent, Even as Spending Increases

Survey reveals more advertisers seeking out specialty shops. While marketing budgets continue to grow, agencies and marketers both say finding top talent remains a problem.

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The Ever-Changing Face of Advertising…Changes Yet Again

Today, more so than years past, marketers are looking to fill voids left by specialty agency talent in their roster shops at what could be considered an alarming pace.

In 2013, only 47% of marketers stated they were looking for “specialty agencies”. At the end of last year, 71% of marketers in our survey said they needed help from specialty firms.

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New Survey Data Proves It: Agencies Need to Be More Aggressive to Win Clients in 2018

Referrals are in decline, and in-house agencies abound. If you’re not feeling it yet, you will. The changing agency and marketer landscape has significantly impacted the way agencies find and win new business. No longer can agencies exclusively rely on referrals and networking to drive the success of their firm.

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PR firms facing quandary-referrals declining, in-house services growing

The changing marketing service firm and marketer landscape has significantly impacted the way PR firms find and win new business.

No longer can PR firms exclusively rely on referrals and networking to drive the success of their firm.

Once an almost exclusive source of new business for marketing firms, referrals from marketers as a source of new business have dropped significantly since RSW/US first started measuring their importance as a new business resource in 2007.

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In this year’s RSW/US Agency New Business Survey, 52% of the responding ad agencies identified themselves as a “full-service agency.” In 2008, 64% of agencies responding identified themselves as “full service.”

While it’s nice to see fewer agencies define themselves so simply without any real definition around the specifics of their business, it is still concerning that so many advertising and marketing firms put themselves in a bucket that isn’t more uniquely defined.

In the same study, 8% of marketers said they get up to 21 calls a week from agencies. 60% say they get 6-10 calls per week. That’s a lot of you attempting to capture the attention of the marketer.

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Do your marketing agency’s children have shoes?

While there appears to be no slowing down in terms of the number of agency new business technology tools being developed every day, new research show there’s a limit to how much marketing agencies can do to stay on top of what’s new—which impacts how much they can truly benefit from these offerings.

Marketing agency lead generation and business development firm RSW/US recently completed its fifth annual New Business Tools & Technology Report in partnership with training and resource center Mirren.

In this year’s survey, agencies state they do not have the resources to utilize agency new business tools in a consistent and productive manner—which in the end, makes them feel like many of the offerings simply aren’t that effective.

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Does Your In-House Agency Need an Outside Agency?

Many things keep agency leaders up late at night. The latest agency night terror is the pendulum swing of clients building in-house agencies to replace them.

The fear appears to be spreading: 80% of agencies predict that their clients will bring at least some marketing services in-house in 2017, according to RSW/US.

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5 Trends That Will Define Agency New Business in 2017

Will 2017 be the year agencies fall dangerously out of touch with client expectations?

How will the shift towards project-based work impact your agency’s ability to retain long-term clients?

Do clients intend to move more marketing services in-house in 2017?
A new report from RSW/US examines these and other troubling trends, offering valuable insights into both agency and marketer perspectives on key topics such as spending, project work versus AORs, and the explosive rise of marketing technology.

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