Introduction advertising unit Structure

10.9 CHANGING ADVERTISING AGENCY OR CLIENT 
TURNOVER 
10.9.1 Meaning : 
When an advertiser leaves one advertising agency, and shifts 
to another, this practice is termed as client turnover. Highly frequent 
rate of client turnover results in great loss to advertisers. When an 
agency is changed the advertiser suffers on two counts, on having 
to do away with the old agency and another with the new one. It is 
very much like an employer suffering financial and other kinds of 
losses on account of high „rate of labour turnover in his enterprise. 
Productivity is the main factor of loss of the employer as well 
advertiser. Just as the old employee‟s experience with organization 
is an important factor in policy decisions and implementation. 
Similarly the old agency‟s experience in advertising the company‟s 
product lines is a total loss in case of turnover to another agency. 
The old agency must have already collected considerable data 
about the company‟s product, the market, the nature and the extent 
of competition the consumers and host of other subjects. Such a 
mass of information and data cannot be easily transferred to the 
new agency. Researchers have identified as many as forty factors 
that influence the sale of a product, advertising being one of them.

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When an advertiser leaves one advertising agency and 
switches over to another, it is known as „changing of advertising 
agency‟ or „client turnover‟. The tendency to change advertising 
agencies now and then is most common amongst many 
advertisers. This may result in an reduction of the effectiveness of 
their advertising campaign.
10.9.2 The main reason for changing the advertising agencies 
may be summarized as under : 
1. Dissatisfaction to the advertiser from the services of the
advertising agency. 
2. The advertiser is interested in a new criteria with which the 
present agency is not familiar. 
3. The client and agency perceive the advertisement strategy in a 
drastically different manner. 
4. Change for the sake of change. 
5. Lack of coordination between the top executives of the client 
and the agency. 
6. Loss of confidence. 
7. Staff changes also lead to change of advertising agency. 
8. Perceived unreasonabless of the other party. 
9. Politics and nepotism also result in change of advertising 
agency. 
Changing of advertising agency is not always fruitful. The loss 
might be more as compared to gain on account of the change. In 
the first year the new agency has to digest the problems of the 
advertiser, the nature of the products and the competitive situation 
that exists. The first year of change may be referred to as the study 
year. Thus change of agency amounts to leaving one which is quite 
familiar with the advertiser‟s problems and going to a stranger at 
least as far as the advertiser is concerned. In case of any 
dissatisfaction with the existing agency, it is better to find out and 
discuss it with the top management team of the agency so that the 
misunderstanding, if any, may be removed and also to give a 
chance to the agency for improving its services. The selection of an 
advertising agency should be made carefully so as to avoid a 
subsequent change. It should be kept in mind that the agency 
advertiser relationship is like the physician-patient or the lawyer-
client relationship. The patient pays fee to the physician whether he 
gets relief or not. The lawyer too takes fee, irrespective of the 
judgement in the case. However, in both the cases they perform 
their duties faithfully and therefore why make a change ? This fact 
should be given due weight while taking any decision to change the 
advertising agency. 

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