Elevating Media Agency Services

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In 2024, media agencies are continuously seeking ways to differentiate themselves and provide exceptional value to their clients.

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This is valid for both hold-co agencies and independent agencies in all markets.

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‍As also shared on Forbes, the upcoming phase of growth relies on agencies transforming their economic model to fully harness the potential of AI across their processes, capabilities, and organizational structure, moving from a services-based model into a solutions-based one.

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While campaigns’ execution remains a fundamental aspect of their services, agencies that go the extra mile by fostering transparency and delivering added value beyond individual campaigns will stand out from the competition.  

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In this blog post, we'll delve into the findings of a recent study by the ANA, 4A's, and Advertiser Perceptions to explore how media agencies can enhance their partnerships with clients and drive long-term value, thanks to unique insights.

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Defining Partnerships’ Value for Agencies and Brands

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The report highlights a significant challenge: only 5% of clients and 10% of agencies have a corporate-backed definition of value in their partnerships.  

This gap underscores the need for a shared understanding of what constitutes value in a client-agency relationship.

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The diverse approaches to defining value, including personal opinions and corporate guidelines, reveal the complexity of this issue.

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Agencies must tailor their value propositions to meet diverse client expectations, ensuring alignment on what value means for each unique partnership.

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61% of agencies do not have a formal method to assess and deliver an overall relationship value metric.

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Procurement professionals on the brand side are more likely to have such systems in place, suggesting an opportunity for agencies to develop comprehensive value measurement methodologies. By aligning with client expectations and having a robust value measurement system, agencies can ensure transparency and mutual understanding.

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Shifting the Focus from Cost to Value

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The study found that while cost is initially a primary concern for 48% of clients when engaging an agency, the focus typically shifts to value recognition after the first year of the relationship.  

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In fact, 90% of clients indicated that a focus on demonstrating overall value and long-term ROI is more important than getting the lowest possible cost.  

Media agencies can capitalize on this shift by emphasizing their ability to deliver long-term value beyond cost savings and to develop strategies that contribute to the client's business goals beyond immediate campaigns.

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This may involve identifying new growth opportunities, optimizing marketing efforts across multiple channels, or implementing ongoing optimization and testing to drive continuous improvement.  

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Value is Connected to Trust and Transparency

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Trust and Transparency emerged as the cornerstones of successful long-term client-agency relationships in the study.

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Nearly all clients and agencies mostly or completely trust that their partners are operating in the best interest of the partnership.

However, only 32% of clients and 44% of agencies completely trust the other party.  

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Overall satisfaction levels in client-agency partnerships provide valuable insights into the health of these relationships.

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When agencies report higher satisfaction compared to clients, it may reveal differing perceptions between the two parties.

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This suggests a need for enhanced communication to clarify expectations and identify areas for improvement, ultimately aligning perceptions and increasing overall satisfaction.

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Satisfaction levels with client-agency partnerships are significantly higher among agencies (73%) compared to clients (50%), indicating an opportunity for agencies to better understand and address client needs.

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Leveraging Technology for Long-Term Value

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Media agencies should take the lead in growing trust, proactively seeking feedback and engaging in open discussions about areas for improvement.

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By demonstrating a commitment to continuous growth and adaptation, agencies can strengthen their partnerships and deliver greater trust, transparency and value over time.  

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In addition to previous solutions, media agencies should consider adopting a software-driven approach to bring their client relationships to the next level.  

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Advertising Resource Management (ARM) software solutions are designed to bring brands and agencies together, providing shared features, dashboards and reports that cover end-to-end advertising operations, from campaign strategy to financial reconciliation.

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ARM acts as a single source of truth, consolidating processes, workflows, and information into a unified system to support media teams more effectively.  

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Thanks to ARM, media agencies can streamline processes, improve data accuracy, and provide real-time visibility into campaign performance and financial metrics for each account by leveraging the simplicity of a SaaS solution.  

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This level of transparency and data-driven decision-making can help build trust between agencies and brands, as both parties have access to the same information and can collaborate more effectively.

Moreover, ARM enables agencies to automate tedious manual tasks, freeing up skilled professionals to focus on higher-value strategic objectives and creating significant operational efficiencies up to 40% of time saved.  

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The AI-driven insights generated through ARM software can also help agencies identify opportunities for optimization and innovation, ultimately delivering greater long-term value to their clients.

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As the advertising landscape becomes increasingly complex and fragmented, Advertising Resource Management provides a much-needed solution for agencies to navigate these challenges and build stronger, more transparent relationships with their clients with the support of true innovation.

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Interested in knowing more about ARM?  

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See how ARM can support each step of advertising operations here.

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