Why do advertising agencies lose accounts?

I've looked into several reasons why major advertising and public relations agencies lose their clients.  The most common reasons why agencies lose accounts is because of the performance of the agency in relation to the clients needs want wants. Many companies have had long lasting relationships and have formed loyalties to their agencies, but as of lately this trend is diminishing. In the growing and fast paced advertising and marketing world has given companies the ability to move from agency to agency in order to achieve results that satisfy them, and that generate the most proficient advertisements that will entice the majority of consumers. Agencies should be aware of the company's needs in order to maintain a healthy relationship with their client and keep the client happy. The themes that revolve around agencies losing clients are as follows:

1) Clients can become dissatisfied with the agencies performance, service, and quality 

2) The client and agency relationship suffers from a lack of communication

3) The visions of the client might be unrealistic for the agency to provide

4) Personality conflicts between the customer and agency

5) Changes in management from with inside the agency and/or company 

For example, PepsiCo had a long relationship with Batten, Durstine and Orson, also known as BBDO, dates back to the 1960's. After several decades PepsiCo decided to terminate the relationship they had with BBDO with some of their products. As I said, BBDO still handles the advertising for some of Pepsi-Cola, specifically Mountain Dew and Sierra Mist. The reason why PepsiCo decided to join other agencies to market some of their brands is because BBDO was underperforming with those brands. PepsiCo and other soft drink brands have suffered in recent years due to customer perceptions of soft drinks negatively effecting sales. Meanwhile they spent $130 million dollars in advertising, but did not generate as much revenue as they wanted to with Mountain Dew and Sierra Mist. PepsiCo's SoBE and Pepsi-cola (in the U.S) are now under the Arnell agency. These are their most profitable and popular drinks Other controversies that lead into PepsiCo's departure with BBDO was due to personnel changes within BBDO. In 2004, BBDO had fired their former Chief Executive Ted Sann, which angered PepsiCo because they had a personal connection and close relationship with him. 

Companies have the ability to switch agencies at will. If the client is not happy with the performance of the agency they will leave. Even though PepsiCo had a long term relationship with BBDO they were unsatisfied with the agencies preformance which reflected in it's sales. And as previously states, came as result of the change within BBDO's upper management. The relationship of Pepsi and BBDO ultimately depends on Pepsi's satisfaction with their sales of their individual products being marketed. If the products are not selling then Pepsi can attribute this to BBDO's advertisement to consumers and fire them. Moral of the story, as an agent your clients product better sell or you'll receive the boot, losing out to a different advertising and public relations firm.

Sources:

BBDO's Recent Wins Quench Thirst Left by Diet Pepsi Loss - Businessweek. (n.d.). Retrieved from http://www.businessweek.com/stories/2005-09-12/bbdos-recent-wins-quench-thirst-left-by-diet-pepsi-loss

Belch, GE. and Belch, MA.  Advertising and Promotion: An Integrated Marketing Communications Perspective, 9th Edition.  McGraw-Hill Companies.  2012.

Pepsi Changes Ad Agencies After Decades With BBDO - WSJ.com. (n.d.). Retrieved from http://online.wsj.com/news/articles/SB122694177366333917