Is this recession or a shrinking agency market?
Our World | On 09, Mar 2010
If the UK agency market as defined by the C&IT survey is only worth £400m, then one of these must be true;
- The recession has been catastrophic
- The agency market is in steeper decline than anyone could have predicted
Agencies have changed the way they report turnover and more are showing income and fees as turnover and not client pass through costs.
On the basis I know that in Motivcom the majority of client spend is not reported as turnover then I must assume this is the case for most large contracts and therefore many of the larger agencies.
Hopefully this confirms that our industry’s peculiar fascination with turnover and percentage agency fee is finally coming to an end.