Report: Creative Agency Accounts Shrink As Clients Take Work In-house

Report: Creative Agency Accounts Shrink As Clients Take Work In-house
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A new report by tech marketing firm R3 paints a worrying picture for global creative agencies after it found they were fighting over a smaller piece of the pie as clients continued to bring components of their creative in-house.

Although not Australia-specific, the R3 report has found that in the US alone creative pitches were down a whopping 38 per cent this year when compared to 2016.

The report also noted that the value of each new business win had diminished. In 2015, the average creative win for a US creative agency was $US2.95 million. In 2016 it rose to $US3.41 million and has shrunk to $US2.11 million this year.

Although the report’s not exactly clear on why creative pitches are disappearing, the general consensus is clients are taking work in-house, namely the easier stuff like social and websites but still preferring agencies for the big campaigns.

The consultancy businesses, increasingly playing in the creative space, would be having an impact, too.

Commenting on the R3 findings, company co-founder and principal, Greg Paull, said: “I think marketers are more promiscuous, consistently looking to go beyond agency of record relationships, and asking creative partners for different projects.”

Paull, whose comments were reported on US industry site AdWeek, added that agencies are aware of the new reality: “We’re running a project-based pitch now, and a couple of agencies have turned it down. But there will always be a couple around the corner who will say yes.”

 

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