Reviewing Your Agency Fees in 2022
HERE’S WHAT YOU NEED TO KNOW
Agency Fees account for a significant amount of the marketing budget within organisations. It is no surprise then that key marketing stakeholders such as procurement and finance want to know that their fees are good value and transparent.
To support our clients Flock created the Flock Agency Scoping Tool. The Flock Agency Scoping Tool is a secure cloud-based tool that allows clients to benchmark agency costs against prior years, competitive agencies and Flock benchmarks. The Tool provides powerful analytics to instantly report and compare divisions, brands, scopes by period, agency, geography, discipline, job description, staff level and many other variables.
The Tool holds over $1.1billion in fees and the data is comprised of over 60 individual agencies ranging from big holding companies to a host of independent agencies.
Are you planning on reviewing your agency fees in 2022? Check out some of our data insights from our Flock Agency Scoping Tool below:
- Benchmarking agency fees may be very valuable; we often see overall improvement in fee value, for the same scope, of between 10-35%.
- Hourly rates average highest in North America, followed by MENA, Europe, APAC, South America and Africa. Do you know by how much they should vary?
- Mark up and overhead rates make up an important part of our benchmarking work, and we see averages rates ranging as much as 2.5 times higher in some markets compared to others, and some large differences in overhead rates between different types of agency. It is also important to know what in included in the overhead and what is not.
- On average US based agencies have more senior teams than UK agencies where team mix’s are more junior heavy, are you analyzing the mix of your team?
- On average the highest rates are for the Creative, PR, Production and Strategic Planning. There can be big differences in agency skills like data and analytics that need careful assessment.
- Typically we see lower rates across Account Management, Social, and Technology with Media being the lowest – which of these roles add most value to you, and could/should be better remunerated?
- We use over 200 unique job titles in our database to form accurate benchmarks across every level, ranging from those roles where 40 dollars is a normal average houly rate right up to roles where the norm is over 15 times higher
This, of course, is a snippet of what the tool has to offer so if you would like to know more, contact us to see the Flock Scoping Tool in action!