Agency reviews cost over $1 million on average, study finds

Advertiser Perceptions study commissioned by ANA and 4A's find incumbent shops spend over $400,000 to defend.

MikeTyes MikeTyes
Jul 18, 2023 - 21:02
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Agency reviews cost over $1 million on average, study finds

The estimated costs don’t include hidden costs of reviews and changing agencies. About a third of marketers reported disruptions in daily tasks and about a quarter indicated delays in launching new campaigns or products due to involvement in reviews.

Consultants play a role in many, but not most, reviews, according to the survey, which found that 46% of marketers use consultants to review existing agency relationships and 39% of incumbent agencies use consultants in defending accounts in review. But consultants can also play a role in avoiding reviews.

“Given the cost implications for both clients and agencies, the work disruptions and delays caused by an agency review and the potential to damage the existing client/agency relationship, it is critical to assess whether the need is really there,” said Matt Kasindorf, senior VP of business intelligence and insights for the 4A’s, in a statement. He suggested a client/agency relationship management program or engaging a relationship consultant as alternatives “given that the majority of clients retain their current agency after a review.”