New Data Reveals Brand/AgencyPartnership Changes & Challenges Under the skin: uncovering the secrets behind WHERE BRANDS SEE THE GREATEST BENEFITSFROM AGENCIES CHRISTINE SCHRADER VP of Content and Communications Improved ROI The agency/brand relationship is a criticalcomponent of a business’s growth potential;the right agency can drive significant growth for A strong agency relationship correlates withmyriad benefits for brands, including strongerrevenue growth, higher return on investment More effective use ofmarketing budget Access to specializedskills and expertise Multiple factors are changing that dynamic:macro-economic and market fluctuations,shifting needs and expectations, and newconsumer behaviors and preferences, to name But there are also major disconnects impactingmany partnerships. 76% of agencies report highconfidence in their service delivery, but just39% of brands are very satisfied. Alignment is Improved brand performance Greater flexibility andadaptability to market changes This new research will help you answer thatquestion, choose the right agency partners,and evaluate and optimize your current The results are clear: brand/agency alignmentsignificantly impacts business outcomes. Improved use of data Brands reporting high satisfaction withtheir agencies are 61% more likely toexperience substantial revenue growth. Here’s to better partnerships! Quick Hits & Notable Trends How To Use This Report Different kinds of brands have different needs, so we broke out three specialsegments you’ll see throughout this report to help you dig deeper into the data and We will also call out whenthere are significantdifferences in the way ENTERPRISE GROWTH EXECUTIVE Brands surveyed withover 500 employees(55% of total survey Brand respondents whoare owners, partners, orC-suite level executives(41% of total surveyrespondents) Brands reporting asignificant increase inrevenue in the last year(16% of total survey Contents The Current State of Brand/Agency PartnershipsTop brand prioritiesModes of engagement How Agencies Deliver ValuePrioritizing creativity in a partnerDemonstrating business impactUnlocking agility as a superpowerAccelerating innovation How Brands & Agencies Work TogetherCollaboration challengesSpeed of deliveryBudget & scope flexibility Evaluating Your Agency Partners Methodology About the Research Partners The Current Stateof Brand/AgencyPartnerships Top brand priorities Nearly seven out of ten (68%) brandssay that overall value is more importantthan cost when evaluating a new agency GrowthMode To achieve their 2024 objectives, brandsare prioritizing brand awareness; notfar behind are customer acquisition,engagement, and retention. The collapse Executive Perspective: Acquisition and Data Privacy 40% of marketing executives at brands say customer acquisition is the top priority vs. 32%of other marketers, while 24% of execs vs. 15% of other marketers flag data privacy andregulation compliance as areas that will need the most attention this year. Both B2B and B2C companiespoint to awareness andacquisition as top priorities,but B2Bs are more focused Modes of engagement This new focus on the full funnel can require verydifferent sets of skills from agency partners, so it’s notsurprising that more than half of the brands surveyedwork with two to three agencies and over a quarter NUMBER OF AGENCYPARTNERS 42% of brands that partner with a single agency work withmedia agencies, compared to the 24% who partner withcreative agencies, 20% with channel-specific agencies,and 11% with performance agencies. As media becomes 1 agency17%2-3 agencies56%4-5 agencies18%More than 5 agencies9% Partner Power 66% of brandssurveyed who reporthigh satisfaction withagency partnershipswork with two to three Brands are most likely to outsource socialmedia, one of the most dynamic mediaenvironments in the current ecosystem,to an agency, while SEO and contentmarketing come in second, closelyaligning with brand-building priorities. B2Bs are over 2x more likely than B2Csto outsource their marketing strategy toan agency. 42% of B2Bs currently consultwith an agency partner on overall strategyvs. just 21% of B2Cs. Other commonlyoutsourced areas for B2Bs include public Enterprise Scale 43% of enterprise brandsoutsource big-picture consulting Partnership disconnects Any partnership as close as the heavily collaborativerelationship between an agency and a brand willcome with some challenges. As these partnerships But that doesn’t explain why there is such a disconnectbetween brands’ evaluation of partnerships andagency assessments of their services. On the whole,agency confidence tends to far outpace brandsatisfaction across almost every component of the Wide gaps between brand and agency assessmentof these partnerships are also present across abilityto demonstrate ROI, transparency, speed of delivery,frequency of communication, and creative ideation. How AgenciesDeliver Value