Advertisers are skeptical about forming long-term relationships with agencies for interactive marketing, according to a study by Jupiter Media Metrix.
The study revealed that 37% of advertisers prefer to compensate agencies on a per-project basis, while 23% favor paying a straight retainer.
“Advertisers are ambivalent about the future of their agency relationships, preferring project-based compensation during uncertain economic times,” Jupiter senior analyst Marissa Gluck said in a statement. “As advertisers respond to a dismal economic climate by slashing their marketing budgets, it is not surprising that their approach to agency compensation reflects such austerity.”
In addition, 34 % of advertisers polled believe their agency relationship will improve as those agencies enhance their services. Just the same, 21% of advertisers are unsure how their agency relationship will evolve, 27% want to bring services in-house and 18% feel their agency relationship is transient and based on cost rather than quality of service.
Jupiter polled 45 marketing executives from different industries in November.
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