Agency clients frustrated by lack of communication, knowledge


According to the 2010 Ad-ology Research Attitudes on Agencies report released at the American Association of Advertising Agencies (AAAA) Transformation 2010 conference, after cost, marketers tend to choose agencies based on creative capability and quality of previous work. Marketing decision makers say they are most frustrated by advertising and Web design agencies that are not proactive, don’t communicate well, and fail to understand their clients’ businesses and their customers.

“There are three deadly account service sins for advertising agencies: Inadequate communication, relying on the clients for industry insights and not listening,” said C. Lee Smith, CEO of Ad-ology Research. “Committing or being perceived as committing any one of these three sins can quickly put an agency at risk for losing a client.”

50% of those surveyed plan increased marketing budgets in 2010 versus 2009, with social media, online advertising and online video expected to see the greatest spending increases.

Other key findings:

•19% of companies with marketing budgets less than $1 million say they do not use social media, 34% say the same for online video.

•Companies with marketing budgets more than $1 million are more likely to have mandates to improve customer insight and retention.

•B2B companies are much more likely to increase budget on public relations than B2C and hybrid companies.