The reasons for, and consequences of, advertising account shifts--during the period 1975-1979--from the agency point of view, with suggestions for improving the agency-client relationship

The purpose of this study was to determine, through the means of a mail survey, the reasons for account shifts, during the period 1975-1979, from the agency point of view in response to a study, concentrating on the same period, of clients' reasons for their account moves. In addition, the various ways agencies responded to their losses and suggestions for improving the agency-client relationship were also research concerns.

A purposive sample of 305 medium to large sized agencies was chosen due to the fact that the group most efficiently represented the controlling interest of the advertising industry. Almost 40% of the sample agencies responded to the survey, which consisted of 22 primarily multiple choice questions regarding the four topics of research.

Although a substantial number of losses was not reported, the types of accounts lost during the period were varied, with "Service" oriented billings being the most frequently shifted. Adequate notification of account terminations and a high percentage of amiable splits were reported, but the positive implications of these findings are outweighed by the fact that many of the sample agencies rely heavily on their top accounts which if lost could have disasterous effects upon the agencies involved.

While agencies primarily received complaints about their personnel, they also noted having received criticisms of agency creativity, management, and media-handling efforts as justifications for client-decided account severances. The majority of responding agencies reported that the client complaints they received during the period were, by themselves, adequate justifications for fewer than one-fourth of their losses. This was principally due to the fact that client-related problems, changes in corporate management being the most frequently noted, were reported as having contributed to many account loss situations.

However, steps that could be employed by agencies, clients, or both, for improving their relations were noted by respondents in an effort to alleviate unwarranted account shifts. The agency respondents stressed the importance of developing mutual trust and understanding of problems, limitations and needs in their working relationships.

The agency-client affiliation suffers most from a lack of trust and honesty. The two partners are prone to take opposing sides in problem issues rather than resolve difficult matters through joint efforts. If trust and understanding can be developed through carefully establishing relationships, discussing topics of concern in loosely structured gatherings of agency and client management and staff, and the implementation of a team oriented approach to problem situations, agency-client relationships will be improved and account losses, as a result, can be diminished.