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Agency Switching Turns Epidemic

It could be a rough year for some ad and PR firms as more than half of their clients could switch agencies in 2007, if data from the Chief Marketing Officer Council is correct. In a new study, CMOC found that 54 percent of the 350 top marketers surveyed plan to drop one of their agencies this year.

That comes after 2006, when two-thirds of the marketers dumped agencies, which the group says is due to increasing pressure to show results from publicity campaigns. "What we're seeing here is a reflection of the overall pressure that senior marketers now have ... to justify their spending," says Donovan Neale-May, executive director of the CMO Council.

High-profile recent switcheroos include J.C. Penney and Wal-Mart. The study claims that "marketing is undergoing substantial changes due to a mandate for CMOs to improve the relevance, accountability and performance of their organizations."

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