The World Federation of Advertisers and Decideware's recent research highlights growing transparency between agencies and their advertiser clients. Their 2022 study found that 68% of agencies are now confident in honestly communicating necessary changes to clients, a significant rise from 45% two years prior. While more agencies are receiving performance feedback, there's a shared sentiment that current KPIs are misaligned, causing some friction.
Diving deeper, less than half of agencies feel their compensation should be tied to performance evaluations. Differentiating by agency type, media agencies usually undergo regular evaluations with performance-linked compensations. Conversely, digital and production partners often lack structured feedback, leaving room for improvement.
A pivotal trend is the increasing emphasis advertisers put on collaboration between agencies. Over half the client respondents assess how well agencies work together, underscoring the modern campaign's collaborative nature. This shift recognises the multifaceted expertise required in today's advertising ecosystem.