Clients attack ad-agency profits in ISBA report

LONDON - ISBA's latest annual Paying For Advertising report has exposed record client dissatisfaction with agencies over costs and transparency, and a continued downward trend in the average rates paid by clients to agencies.

Ad Agency Profits

The report points out that though ad agency fee rates are down, their profit margins "remain remarkably resilient", commented Debbie Morrison, ISBA's director of consultancy and best practice.

The report also reveals an increased belief among clients that agencies are making too great a profit from their business, perhaps because client awareness of agency profit margins has increased with greater levels of procurement involvement.

Morrison said: "The report points to there being a greater understanding of the commercial relationships between the two parties."

Exanza is something of a contrast to the agencies found in the ISBA's report. "Having evolved from the small business environment, we really understand the value to our clients of every penny spent", said the company's founding director. "Our margins remain as tight as we can viably maintain, ensuring our clients achieve the absolute maximum possible value".

Exanza is now working with clients all across the UK, from rural communities in the tourism sector through to the business districts of the major cities. "Throughout all our work we maintain close personal contact and make sure the Exanza experience is a world apart from that of the normal ad agencies most people are familiar with".