Marketers becoming less concerned about competitive conflict within agencies

There was a time when certain clients would not employ an agency that was working with a competitor. However, attitudes have changed, says César Vacchiano, president and CEO of Scopen.

“Our research shows that the percentage of clients not concerned by competitive conflict in their sector within an agency has grown from 21.3% in 2019 to 40% now. That’s a fair leap. While precise reasons were not requested from respondents, further analysis indicates that two main factors stand out in marketers’ attitudes to this — trust and wanting a specific agency, at all costs.”

Johanna McDowell, CEO of Independent Agency Search & Selection Company and managing partner of Scopen Africa, says: “We saw an uptick in trust between clients and agencies during Covid, and are pleased to see all parties appear to be maintaining the status quo. This, combined with clients knowing that a specific agency will be best for what they want to achieve and choosing them despite any reservations they may have had, shows a maturing of the market.” 

McDowell says this trend needs to be unpacked with marketers, with further research potentially revealing new insights. “Is it only about trust, or the fact that some agencies are positioning themselves in the consultancy space, which is known for being a space that has always had conflicting clients and competitive brands?”

Vacchiano says that “in some cases the degree of specialisation of an agency and its reputation mean their value is such that some clients are prepared to take any perceived risk simply because they want that speciality and that service”.

It’s not in the interest of any agency to share client information or be concerned about what a competitive brand may be doing, says McDowell. “For years, agencies have had frameworks within teams so that another team working on a competitor’s project doesn’t get the lowdown on who is doing what. Technology, too, can ensure that even within the same agency, competitors’ information can be locked down and accessed only by password for each project. Agencies have long been using both company values and technology to protect each client’s intellectual property, again reducing any anxiety among marketers.”

Clients not entirely comfortable with sharing an agency with competitors are usually in the retail, banking and fast-moving consumer goods sectors, but even these may share an agency depending on what type of work the agency is doing for each.

“Clients want the best and in a sea of sameness, they’re showing more and more that they’re willing to roll the dice on an agency known for being the best. So far, trust is winning,” says McDowell.

The big take-out: A growing number of marketers want the advertising agency they want, even if that agency services a competitor.