NEW YORK: PR agencies were involved in more than a third of the agency changes initiated by CMOs in 2006 and will be the target of more this year, according to the 2007 Outlook Survey from the CMO Council.
The survey, which polled 350 top marketers, showed that 15% of respondents plan to change PR agencies in 2007. Among the top reasons for changing agencies overall in 2006 were creative (30%), strategic (29%), and quality of work (29%).
"Agency turnover has been high for the last couple of years. First and foremost it's being driven by an increased focus ...on measures and metrics and quantifying the value of marketing," said Brian Regan, SVP at the CMO Council. "PR is traditionally a very difficult service to quantify, and it is a likely casualty in the war of metrics and measures."
Indeed nearly 44% of respondents identified quantifying and measuring the value of marketing programs and investments as one of the top three challenges facing their organization.
On a positive note, marketing budgets appear to be on the rise. Nineteen percent of respondents anticipate a 1-5% increase in 2007 over 2006; 12% predict a 6-10% increase; and 14% anticipate more than a 20% increase.