Understanding the Client-Agency Relationship in 2016 - Review of RSW Report

The 2016 RSW/US Report interviewed 165 senior level marketers and 115 marketing agency executives in December 2015 to better understand the relationship between marketing agencies and their clients (mainly marketers at companies). 

We point to four areas that stood out to us as a digital agency and some things we can all keep in mind as we get into 2016 in regards to a client-agency relationship. 

1. Increased Spending Budgets

Both sides of the coin plan to invest somewhat or even heavily in their business development this year. This is on the uphill climb from the last two years which is a great sign for the market. This could mean that agencies will expand their capabilities, seeing as they can invest more in developing their team and service offerings. Similarly, marketers could come to agencies with more work. 

2. Increased need for analytics & data

Over 80% of agency leaders think the demand for marketing data and analytics will increase slightly or even sharply. Likewise, around 70% of marketers say analytic capabilities will be one of the largest factors in selecting which agency they'll work with. Now that content and online marketing is paying dividends, marketers are monitoring spend and return more closely to maximize their efforts.

3. Shift to single-agency commitments

In comparison to last year, there is a prediction that more marketers will opt for one agency over hiring several. This could be due to a desire for easier communication across the board, increased satisfaction with a single agency, and/or agencies taking on a wider array of projects. Working deeper with one company allows an agency to have a clearer understanding of a company's goals, needs, audiences and culture - leading to better results.

4. Need for greater communication between parties: 

As we can see from the graphs above, at the core, the agency and marketer have the same goals and expectations. The top 3 reasons clients hire agencies and the core goals of the agencies themselves include helping with brand strategy, digital marketing development/management, and creativity. 

However, the report points out that, 

"Ironically, for an industry so communication-driven, the responses exhibit significant opportunity for both marketers and agencies to grow and thrive through better communication with each other." - RSW/US Report

Through reading the report, you'll understand why this miscommunication tends to exist, and how you might resolve it by focusing on the similar goals of client-agency relationships and finding how each party can help to reach them. 

The full report is worth a quick read-through if you fall on either side of this relationship. For more on hiring a digital agency, contact ArcStone or take a look at "Why Hire a Small Digital Agency Next Time Around."