Clients Prefer Local Ad Shops to Global Networks: Report

01 December 2004

Only a tiny minority of marketers believe that multinational agencies deliver a better service than local ones.

So avers a new study sponsored by Agency Assessments International, a London-based agency search and assessment specialist.

The research reveals that a mere 4% of clients agreed with the proposition that "multinational agencies deliver better all-round performance". Sixty-seven per cent of clients disagreed.

A similar scepticism prevailed on the other side of the agency-client fence, just 23% of agencies agreeing that multinational companies made better clients.

However, there were more positive responses when it came to 'value for money'. Eighty-six per cent of agency bosses believe they offer clients better value than they did five years back - and, surprisingly, a majority of clients (60%) felt the same way.

However, in some quarters the report itself may generate a degree of dubiety given the limitations of its sampling. Just twenty-one advertisers, each spending upward of £25m ($47.4m; €35.65m) annually, participated in the survey.

Whether a sample of this size can be deemed representative of multinationals as a whole is (to say the least) debatable. In the latest Top 100 Marketers rankings published by Advertising Age, number one hundred on the list, Hasbro, spent a masive £105m - four times the base figure used by AAI.

Thirty top agencies also took part in the survey.

Commented AAI chairman David Wethey: "The relationship between advertising agencies and their clients has been much in the news lately. This is hardly surprising, with marketers under unprecedented pressure to perform and agencies going through a great period of change."

Data sourced from BrandRepublic (UK); additional content by WARC staff