Thu Sep 19 09:00:00 UTC 2024: ## Agencies Struggle to Move Clients from Projects to Retainers Amidst Uncertain Economic Climate

**London, September 19, 2024** – As the advertising industry navigates a challenging economic landscape, agencies are facing a growing challenge: transitioning clients from project-based work to long-term retainer agreements. While retainers offer the benefit of consistent revenue and deeper partnerships, the current climate makes it difficult for agencies to secure these commitments.

The Cannes Lions State of Creativity report revealed that nearly half of agency-client relationships are strained, leaving agencies vulnerable to instability and unpredictable revenue streams. This trend is further fueled by the project-by-project approach adopted by many brands since the pandemic.

Industry experts offered diverse insights on how to navigate this shift:

**Demonstrate Value and Build Trust:** Many highlighted the importance of consistently demonstrating value through strong results, proactive solutions, and deep understanding of a client’s business. This creates a foundation of trust, leading to a more collaborative and sustainable partnership.

**Beyond Project Delivery:** Agencies should go beyond delivering tasks and position themselves as strategic partners, offering insights, advice, and innovative solutions. This differentiates them from mere service providers and fosters a sense of indispensable value.

**Flexible Retainer Models:** Adaptable and scalable retainer models are crucial to appeal to clients with varying needs and budgets. Agencies can offer hybrid approaches, combining project-based work with smaller retainers to introduce the benefits gradually.

**Embedded Team Approach:** Some advocated for embedded teams, where agency personnel work directly within a client’s organization. This fosters a deep understanding of the client’s business and allows for a more integrated approach to problem-solving.

**Open Communication and Transparency:** Honest conversations about pricing, expectations, and performance metrics are essential to build a foundation of trust and ensure both parties are aligned on goals and objectives.

**Challenges and Alternatives:**
While retainers remain an ideal model for agencies, the current economic uncertainty makes it increasingly challenging to secure them. As a result, agencies are exploring alternative strategies like “agency of record” models and maximizing the profitability of project-based work.

The consensus among experts is that the key to a successful transition lies in demonstrating value, building trust, and embracing flexibility. By going beyond project delivery and becoming strategic partners, agencies can foster long-term relationships that benefit both parties.

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