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Transparency is a key determent in marketers’ trust of agencies

April 13, 2016 | By Rande Price, Research VP – DCN @Randeloo

Greater transparency on rebates and agency business models is critical to the level of trust between advertisers and their media agency in today’s marketplace. In a recent study conducted by ID Comms, nearly nine in 10 (86%) of marketing, media and procurement specialists reported that the current levels of trust that exist between advertisers and their media agencies was no greater than average. Further, 80% of the respondents do not anticipate any change in the level of trust in the coming year. Importantly, just over three-quarters (77%) of respondents reported that a close and trusted relationship between marketer and agency will deliver better stronger performance; it’s something many want to see fixed in the near future.

When advertisers and media agencies were asked specifically which areas of transparency most influence an advertiser’s trust in their media agencies, their top responses were:

  • How the agency manages rebates/AVBs, 71%
  • How the agency makes money, 60%
  • How agency group buying / share deals work, 59%
  • How the agency trades with media vendors, 58%

id comm chart 1
ID Comma conducted this survey globally with 65% of respondents based in Europe, 25% in the U.S. and 10% in the rest of world. Interestingly. Interestingly, 67% of U.S. agency respondents ranked higher than their counter parts in Europe with regards to “how the agency trades with media vendors” and “how the agency manages rebates” as the most significant items to determine advertiser trust in their agencies

This study further emphasizes the need for trust and transparency in business practices among advertisers and media agencies. Providing clarity on budgets, media buying practices, data integration and post campaign analysis should build stronger partnerships between advertisers and media agencies.

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