Agency vs Corporate | Insights Association Panels

There is a general tension between clients and agencies, and it’s not something necessarily unique to market research. It exists in most service-based businesses. Clients have particular needs that they lack the capability and resources to achieve by themselves. Agencies offer these capabilities and resources at a marked-up price, but need to spread their costs across multiple clients in order to succeed.

There are many nuances to this and reasons for this tension, and there are many who have worked on both sides that have seen why. Yet the delta still exists.

Revenue is a big driver of this from an incentive/operational perspective, with there being an irony that client research teams need to be more commercially minded whilst agencies need to be less.

I found these two panel discussions insightful and wanted to compare and contrast what agencies are thinking to that of the end client (with a little help from Ipsos Facto).? It would be great to hear from the panelists as well. Feel free to jump in.

?Points of Agreement:

• Importance of Global Trends: Both groups emphasize staying abreast of global trends, suggesting a shared understanding of the need to adapt to a dynamic marketplace.
• Embracing Technology (Especially AI):? Both acknowledge the importance of technology, particularly AI.? However, both also stress that AI is a tool to augment human capabilities, not replace them.
• Need for Creativity:? Both value creativity, although they express it differently. The agency side mentions "co-creation" and "permission to fail," indicating a desire for a supportive environment for innovative thinking. The client side emphasizes "creativity with findings," suggesting a focus on insightful interpretation and presentation of data.
• Growth is Key:? Both groups are concerned with growth—the agency side with growing the industry, its people, and client business, and the client side with finding growth for their own businesses.

?Points of Divergence:

• Focus: The agency group emphasizes internal factors like talent development ("high-quality talent," "grow our people"), industry knowledge, and leveraging AI to understand consumers. The client group is more externally focused, prioritizing understanding consumers as people, achieving business outcomes ("if it doesn’t drive the business, don’t do it"), and efficient team operation ("need my teams to be more efficient").
• Communication and Deliverables: Clients desire concise, impactful communication ("giant decks need to be narrowed down…replaced with narratives"), while agencies highlight the importance of multiple data sources and a "complete view," which could lead to more comprehensive (and potentially lengthy) reports.? The client's desire for immediate communication of value and differentiation suggests a need for agencies to be more upfront and succinct in their presentations.
• Working Style: The agency group discusses the "need to be flexible and adaptive," suggesting an openness to change and experimentation.? The client group expresses a need for simplicity in working with known partners while also seeking "new thinking," indicating a tension between established relationships and the desire for fresh perspectives.
• Client Relationships: The agency group mentions "client first," indicating a commitment to client service.? The client group focuses on internal team efficiency and business impact, suggesting that agencies must demonstrate clear value to retain clients.

?Overall:

Both groups share core values around innovation, growth, and the strategic use of technology.? However, their perspectives differ regarding internal vs. external focus, communication styles, and the specific ways they seek to achieve their goals.? Agencies appear to be more internally focused on developing their talent and expertise, while clients prioritize business outcomes and efficient execution.? Bridging this gap requires agencies to demonstrate a clear understanding of client needs and deliver concise, impactful solutions that drive business growth.

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Additional Insights (Based on General Knowledge):

The dynamic between agencies and clients is constantly evolving, especially in today's rapidly changing digital landscape.? Agencies need to be agile and adapt to client demands for greater efficiency, transparency, and demonstrable ROI.? Clients, in turn, need to be open to new approaches and collaborate closely with agencies to leverage their expertise and achieve shared success.? Clear communication, shared goals, and a strong understanding of each other's perspectives are crucial for a productive and mutually beneficial partnership.

Thank you to Melanie Courtright, Wayne Levings, Ramon Melgarejo, Mary Ann Packo, Melissa Sauter, Nicola Blue, Natasha Hritzuk, Jing Mertoglu, and Khary Campbell for your time and candid contributions. After all, we do need to collect and connect the dots (thank you, Nikkia Reveillac).