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Cost of the Pitch II: The Rise of Value

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The 2024 "Cost of the Pitch II: The Rise of Value" report, a collaboration between the ANA, 4A's, and Advertiser Perceptions, builds upon the 2023 "Cost of the Pitch" report, delving deeper into the evolving dynamics of value within client-agency relationships and the factors for a successful long-term client-agency relationship.

Key Insights

  • Value Takes Precedence. While cost remains a factor, 90 percent of clients prioritize overall value and long-term ROI, indicating a shift in focus towards sustained success.
  • Trust and Transparency as Foundations. Both agencies and clients emphasize the importance of trust and transparency in fostering successful, long-term collaborations.
  • Defining and Measuring Value. The report identifies a significant industry-wide gap in defining and measuring value, with only 5 percent of clients and 10 percent of agencies having a formal definition in place.
  • The Evolution from Cost to Value. Client perceptions often shift from an initial emphasis on cost to recognizing the value delivered by agencies as the relationship progresses.
  • Successful Long-Term Relationships Hinge on Several Factors. Trust and campaign performance/ROAS are the top two factors cited as keys to maintaining a successful long-term client/agency partnership.

By addressing these key areas, the industry can move towards a future defined by open communication, deeper trust, and mutually beneficial partnerships. Agencies that understand and adapt to client expectations, while proactively offering solutions, will undoubtedly thrive. Simultaneously, clients who recognize the value of agencies' expertise and invest in open communication will unlock the full potential of these partnerships. As the advertising landscape continues to evolve, a commitment to ongoing learning and adaptation will be paramount for both agencies and clients to achieve lasting success in a market where value is the ultimate differentiator.

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Source

"Cost of the Pitch II: The Rise of Value." ANA, 4A's, and Advertiser Perceptions, June 2024.

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