
For the first time in three years, search consultant
Setup’s annual agency-client relationship survey reveals a 15% decrease in clients planning to switch agencies, which the firm concludes reflects stronger agency-client partnerships in
2024.
This decrease, from 55% in 2023 to 40% in 2024, reverses a trend of increasing dissatisfaction in previous years.
The flipside to that trend
reversal: Though fewer clients are switching agencies, 68% are planning to review their agency partners by the end of 2024.
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Setup’s conclusion: “Brands are shifting toward deeper evaluations
and realignment with business goals.
Dissatisfaction with delivery has risen as the primary reason for clients rethinking agency relationships, with 48% citing it as a significant
issue—an increase of 14% from last year.
Additionally, the survey finds that 55% of clients now prefer specialist agencies over generalists. That said, 88% of clients indicate they would
work with their current agency again if they were to part ways, signaling optimism for long-term partnerships if performance and value align.
On the AI front, 80% of marketers are leveraging AI
primarily for content creation, operational efficiency, personalization, and research—marking a shift toward data-driven marketing strategies.
44% of those surveyed reported bringing more
marketing functions in house.
“While it’s encouraging to see fewer clients switching agencies, the rise in planned reviews emphasizes the need for agencies to
provide stronger strategic value and delivery. The focus is shifting from reactive solutions to proactive, long-term partnerships,” said Joe Koufman, Founder & CEO of Setup.
The report is
based on a survey of 400 marketers between May and August 2024. Access the full report here.