19 July 2022

Agency rosters are in an era of constant change

The majority of multinational advertisers are changing or are planning to reform current structures for working with external partners, according to new research from the World Federation of Advertisers and The Observatory International.

Context 

Three quarters of major multinationals are “somewhat satisfied” or less with their current agency roster structure; nearly seven in ten (69%) have recently made, or are planning to make, changes to their roster to reflect the new world order and their desire for a different structure. 

Only 25% of respondents say they are “very” or “extremely” satisfied with their current arrangements.

Why it matters

“There are many reasons why rosters need to be updated,” says Julia Kraft, Senior Manager, Global Marketing Services at the WFA. “Sometimes existing structures don’t work due to internal issues at the advertiser end. The accelerating rate of change in consumer behaviour and digital usage makes it highly likely, however, that most rosters are heading for a period of constant evolution as brands seek new ways to be more effective with their marketing communications.”

Takeaways

• Eighty percent of respondents now have an in-house agency set-up of some shape or form (up from 57% in 2020), and a further 13% say that they are considering establishing one. This change will not only alter agency scopes of work but also will require additional focus on working processes to ensure effective collaboration between external agencies and in-house teams. 

• The dominant model used by respondents is “multiple agencies managed individually by marketing” (90%). However, many use a variety of core models across their operations, which perhaps underlines the complexities of developing fit-for-purpose roster architectures. 
• One third of clients stated that they either did not use, or did not have, a consistent agency performance measurement and evaluation approach. Effective relationships require ongoing evaluation and open dialogue, without which dissatisfaction can be allowed to grow to detrimental proportions. 
• A roster transformation process is not simple or without challenges – getting the right model for your organisation takes time, resource, mass stakeholder engagement and, more often than not, outside third-party assistance to be successful. 

Sourced from WFA