Debating Protect or Stand Idle: A Dilemma Faced by Established Entities
In a recent analysis by marketing consultancy R3, it has been revealed that incumbent agencies are facing significant challenges in retaining their business during reviews. The data shows that only 15% of agency incumbents managed to retain their business during reviews in 2021.
R3's extensive annual analysis on agency business reviews and pitches tracks the outcomes of incumbent agencies defending their accounts versus challengers. The 15% retention rate underscores the difficulties incumbents face in maintaining their clients, despite their existing relationships, deeper client understanding, and proven performance.
John Moore, the global leader of Mediahub, shares a critical view towards the success of incumbent agencies in review processes. He emphasises the importance of addressing issues before an account goes up for review. In his perspective, any good CEO of an agency should be aware of red flags and warning signs on an account before it goes up for review.
If an account goes up for review at Mediahub, it indicates that the agency has not been able to fix the problems. John Moore himself has not defended a piece of business in years, focusing instead on proactive problem-solving rather than reactive defence.
For those seeking more precise or updated yearly figures from R3’s official publications, consulting their 2021 global agency review report would provide the most authoritative source. The report confirms that in 2021, only 15% of agency incumbents retained their business during reviews, reflecting a strong position for challengers in the competitive market.
The low retention rate for incumbent agencies during reviews suggests a significant challenge for these agencies, but it also presents opportunities for challengers to seize the moment and make their mark in the industry. As the market continues to evolve, it will be interesting to see how incumbent agencies adapt and respond to these challenges in the future.
In the competitive business landscape, incumbent agencies struggle to retain their clients, with only 15% retaining their finance during reviews in 2021, as revealed by R3's annual analysis. This indicates a growing influence of challengers in the industry, as the low retention rate presents opportunities for them to make their mark in the market.
