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There is a “significant strain” between clients and their agency partners, which is impacting the quality of the creative output, according to a new industry report.
The fourth annual Lions State of Creativity report surveyed 3,000 marketers and creatives, with nearly half of agencies/creative partners (45%) describing their client relationships as “difficult,” with businesses found to be three times more likely to suffer a decline this year as a result. Just over a quarter (26%) said they found client relationships to be “easy.”
According to the report, one unnamed respondent said their relationship was “getting harder and harder” and “lacks professionalism.”
However, this is not the view of brands, which felt more at ease with the current partnership approach with agencies; around a third (32%) said it was “easy” while 37% found it “difficult.”
There was also a higher feeling of positivity with increased marketing investment, signaling a fresh momentum for businesses with over half (51%) of brands and agencies anticipating stronger growth this year.
The causes of tension
The main cause of the tension was from frustrated creatives, who said they felt undervalued by clients and that they were seen mainly as “an extra pair of hands,” leading to less effective creative work being produced.
Another source of tension is the difficulty of collaborating with clients’ other external partners, with frustration cited around the need for a better alignment toward a common goal and more effective communication. Agencies also expressed a desire for more freedom to pick partners as well.
There was also concern about a lack of trust, which clients share.
“You will succeed or fail based on you as a client. You are half of the relationship, so if there is a problem, 50% of it is your problem,” said Victoria Sjardin, vp of international marketing at The Kraft Heinz Company.
She also said that using reverse appraisals with agencies as part of quarterly or annual reviews offered a regular opportunity to discuss what worked and what didn’t between the her team and external parties.
When you speak the same language, it’s then much easier to all work together to accomplish the same goal, which for us is making the most creatively effective work in the industry.
Sofia Colucci, CMO, Molson Coors
“We involve our agencies in our strategy sessions and actively seek their counsel. This collaborative approach has led to some of our most innovative ideas,” suggested Raja Rajamannar, chief marketing and communications officer for Mastercard.
