The future media agency won’t look like the current one | WARC | The Feed
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The future media agency won’t look like the current one
Data capabilities are what marketers now look for when choosing to work with a particular agency or group, new research shows: 94% of senior marketers say they’re likely to review their media agency relationships due to data and technology’s rise in importance.
Why it matters
As brands continue to in-house technology and talent – and as first-party data capabilities and automated buying platforms become more important to campaign performance – a gap has formed between brands’ needs and media agencies’ abilities and business models. Agencies will need to address perceived failings around expertise and transparency.
Key findings
A survey of 150 senior marketers at $1bn+ revenue companies in the US, UK and APAC, conducted by global digital services provider Kepler, found that:
- 85% say data optimisation, rather than media buying clout, is now the most important criterion determining media investment performance;
- 65% say traditional media agencies do not have the technology expertise their organisation requires to maximise media investment;
- 78% of marketers say they will prioritise agencies which have a talent and trading model that can flex around their in-house operations;
- 71% believe their digital media performance is suffering because their media agency partner/s do not have strong enough relationships with the technology giants.
Key quote
“The traditional model is becoming stretched. And while price is important, for many clients this is one factor among many. Clients need to focus on finding fair and appropriate incentivisation models and agencies need to set themselves up to adapt to these changes” – Matt Green, Director of Global Media Services, World Federation of Advertisers.
Sourced from Kepler
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