The marketing world is in a period of unprecedented flux on a number of fronts. But it’s perhaps in the agency-client relationship where that change is most significant.
That view, felt by many, is borne out in new data from creative and marketing agency Scooter. The agency recently surveyed more than 100 of the country’s top marketers to find out what was on their minds for the coming financial year. B&T has the pleasure of exclusively revealing the results.
In our last piece, we looked at the changes affecting the country’s marketers. In short, there is a downward pressure on costs affecting every section of the marketing journey. But marketers are also looking to in-house capability and they think AI will help them get there. While the unkind observer might think the music has stopped for agencies on that front, there are still opportunities for smart agencies.
Marketers Demanding Change
Let’s start with the news that might be tricky for agency staff to hear. Marketers are rapidly reconsidering how they expect to work with agencies in the coming financial year.
More than 40 per cent, for instance, expect to move to hybrid models with agencies for specific tasks only. As we revealed last time, nearly two-fifths of marketers said that they will seek to build more in-house capabilities and reduce agency dependence in the coming year. About two-thirds of marketers expect that they’ll be moving to project-based pitching, too.
That might sound scary. However, for smart, nimble agencies there is a significant opportunity to re-evaluate and repackage pricing models. Stepping away from a head hour-based retainer model could give agencies the freedom to work smarter, faster and in more innovative ways, for instance.
“It’s no secret that agencies are needing to consistently refine their business models to keep pace with a rapidly changing market,” said Anna Hodgson, CEO at Scooter.
“At Scooter, we’re working more closely with internal creative teams than ever before and are focusing on output-based rate cards, which work when there are deep, trusted relationships and clear visibility of brand plans and business goals.”
That said, a similar proportion of marketers want their agencies to become more long-term strategic partners. This might sound contradictory, but it perhaps shows that marketers are less encumbered by traditional models and agencies, at the least, should follow suit.
What is interesting is that less than five per cent of marketers are after AI-led agencies that can replace traditional models. That might be news to some of the world’s holding companies.
“During a time of rapid change, businesses want their agencies to adapt to ever-evolving needs,” said Hodgson. “While there’s an expectation that AI will drive efficiencies, the human craft is just as essential to ensure brands connect authentically with their customers, so getting the balance right is critical for both agencies and brands.”
More than 60 per cent of marketers expect their agencies to produce faster this financial year (though there’s every chance that’s been the case for the last 100 years). Nearly 70 per cent expect agencies to provide more cost-effective solutions. Again, stop us if you’ve heard that one before.
But refreshingly, despite all the talk of AI, more than half of marketers said they expect that human ingenuity will become more valuable. That should provide some comfort for those expecting to be caught up in the AI fray. Around 45 per cent of marketers are looking for AI-automated production, though.
How to get back on track?
Above all, however, the country’s marketers are looking for their agency partners to be more transparent. That isn’t to say agencies are opaque and murky, only that marketers are facing pressure from within their own organisations to show return on spend more than ever.
Nearly four-fifths of the country’s marketers are looking for agencies to provide clear measurement of their marketing impact. Some two-fifths also said they expect their agencies to provide total transparency in strategy and spend. Nearly a third said they’re after balanced guidance between in-house and agency delivery.
“At a time when every dollar needs to go further, both agencies and clients are focused on maximising returns and understanding what truly drives performance. Now is the moment for deeper collaboration, with clients sharing sales results and agencies sharing performance metrics, so together we can pinpoint what delivers the strongest return,” said Misha Horsnell, marketing director and strategist at Scooter.
Nearly two-thirds of marketers are expecting their agencies to provide ROI directly linked to business outcomes. That should be obvious but it requires agencies to become deeply embedded and focused on their clients’ business needs.
Marketers are also looking for their agencies to provide creative solutions that stand out in the market. That shouldn’t be surprising, perhaps, but at a time when agency talent is seeping out of the industry, it may become more valuable.
“AI has given both clients and agencies the ability to visualise ideas with remarkable accuracy and speed, shrinking the gap between concept approval and production. However, without the tight control of the human eye, there is a real risk of AI being overly influenced by existing work and creative outputs starting to look the same. With exceptional talent currently in the market, smart agencies are taking the opportunity to recruit top-tier creatives to ensure originality and craft remain at the heart of the work,” said Hodgson.
Marketers also looking for innovation and strategic foresight from their agencies and advanced expertise in AI, automation and analytics. These technologies, AI and automation in particular, are rapidly reshaping the world around us. There will always be a time for human craft within agencies—as evidenced above—but simply working harder, burning the candle at both ends, won’t necessarily endear an agency to a client in the future.
With more than half the country’s marketers expecting their team to expand in FY26, agencies would do well to show the value they offer clients before it’s too late.
“Marketers today are under more pressure than ever, expected to deliver more with less, across tighter timelines and an ever-expanding number of channels. While AI is creating valuable efficiencies, the real relief comes from trusted agency relationships, where the agency acts as an extension of the team, stepping in with a marketing specialist to take on a project or an account manager who is one step ahead in anticipating needs,” said Horsnell.
You can find the complete report on Scooter’s website.
