The average client-agency relationship lasts approximately seven years, more than double the 3.2-year average reported in 2016, according to a report issued by the Association of National Advertisers and the American Association of Advertising Agencies.  

The joint study surmises that the longer relationships may be due to clients “seeking long-term strategic partners which can provide integrated solutions, navigate complex marketing challenges and drive sustainable business growth.”    

That said, there’s a wide gap in the tenures of full-service agencies, which average 7.3 years, and among top clients media agencies, which last about 3.7 years (see chart below).

The report suggests that rapid changes in technology may be a factor in the shorter life of media agency relationships with clients wanting to be sure their agency is up to speed with the latest tech and ability to optimize it.   

But it also notes that some clients switch media agencies to leverage competitive pricing and potentially lower their overall marketing spending. The report cautions that “marketers should carefully weigh the potential benefits of short-term cost-savings against the long-term value of a stable client-agency partnership.”  

Experiential agencies have the longest average tenure – about 10 years.  

Independent agencies report longer AOR tenures (7.3 years) than holding company agencies (5.8 years).  

Clients without mandatory review periods (60% of study respondents) tend to have longer relationships (8.1 years) than those with frequent reviews (as low as 3.8 years). And, as the organizations revealed in earlier reports, the 40% of clients mandating agency reviews spend on average $408,500 per pitch.  

Among clients with mandatory review periods, five years is the most common length of time before a review is triggered followed by three years. The report reiterated advice in earlier joint reports that it’s a good idea to analyze the value of mandatory reviews compared to sustaining longer-term relationships.  

The majority of agencies’ top 10 clients are in AOR/retainer-based relationships, which the report surmises is another indicator of a strategic preference for longer partnerships.  

The report also urged clients to institute a “client-agency relationship program” to help maintain healthy, mutually beneficial partnerships.  

Access the full report here.