Digiday Research: 60 percent of marketers renegotiated a media agency contract in the past year
Sixty percent of brand marketers have renegotiated contracts with media-buying agencies in the past 12 months, according to a survey of brand marketers conducted at the Digiday Programmatic Marketing Summit.
The results highlight the tumultuous relationships companies have had with their agencies in recent years. A bombshell 2016 report by the Association of National Advertisers found that agencies had been participating in a kickback system that syphoned off marketers’ ad dollars, and raised wider concerns over the lack of transparency in digital advertising.
Those concerns have led to marketers asking tougher questions of their agencies, and increasingly opting to renegotiating contracts. An earlier survey by Digiday found that 30 percent of media buyers said they had a client ask to renegotiate a contract over transparency concerns.
Marketers hope that renegotiating their contracts will afford them greater oversight over where their media dollars are being allocated, and more transparency into programmatic transactions and other aspects of media buying. They’re also looking for ways reduce their exposure to media and data arbitrage, a key point of contention surrounding the issue of transparency.
Outside of transparency-related renegotiations, the trend of marketers conducting more of their marketing in-house could also be leading to the high number of contract renegotiations. Twenty-three percent of companies are bringing their programmatic functions in-house, according to a previous Digiday survey.
-
TikTok’s uncertain future: the issues marketers should (and shouldn’t) fret over
A TikTok ban would require U.S. lawmakers to prove that the short-form video app is a genuine national security risk. So far, that hasn’t happened.
-
Maybe Web3 isn’t as dead as it would seem, as agencies play with new data-generating models
Agencies are continuing to invest in Web3 technologies in new ways, from client activations to data management.
-
Why real estate company Windermere is adding influencers to its marketing mix and spending half of its ad budget on them
Windermere is working with Seattle-based agency PB& as well as the home-focused publication Domino to partner with influencers like design influencer Max Humphrey.
-
SponsoredHow critical data pillars will increase brands’ confidence in CTV
Mario Diez, CEO, Peer39 With every quarter, the balance of TV viewership slips away from the traditional linear model and more towards connected TV. Less than half of the adults in the U.S. subscribe to cable or satellite, and fewer than half of the households watched linear TV daily in the second half of 2022. […]
-
Digiday+ Research: Agencies’ attitudes on secondary social platforms have seen ups and downs (especially on Twitter)
Digiday+ Research surveyed over 100 agency professionals, and found that agency clients' approach to the channels categorized as "other social platforms" has been somewhat erratic over the last year.
-
Why DOOH is a big draw for startups and direct response marketers
As digital ad channels, like social and paid search, become saturated and data privacy gets more restricted, startups and small businesses turn to DOOH to boost brand awareness.
