Despite concerns over Brexit and the resulting purse-tightening that has seen UK clients bring more of their marketing efforts in-house, 2019 was another solid year for agencies. Strong financials, a string of acquisitions and global expansion all support the UK agencies’ claims of good health. How do we know?
Because we’ve ranked the growth of UK agencies by their annual financial results and headcount, not only showing which agencies are top of the pack, but also which are growing the fastest – both here in the UK and internationally.
All this (and a ton more) is published in our free 120-page UK Agencies Benchmarking Report for 2020. But before you race to find out where you or others sit among them, stick around for an overview of what agencies should expect in the year ahead.
Agencies are optimistic about market health
Our adjoining survey of UK B2B agencies (also in the guide) shows that we’re starting the year with the same cautious optimism we’ve seen of late. A conservative 78% of the agencies we surveyed describe the current industry as ‘strong’ or ‘good’; yet, a sizeable 91% expect growth from their own company in the year ahead.
Now is a time of change and experimentation
Agencies dotted across this fertile landscape are ploughing it with experimentation and evolution. There are new business models and services springing up like healthy crops through the soil. The guide examines some of those changes, including a growing appetite for global expansion and an agency model focused on differentiation (in part through strategic client selection, which agencies have until now feared would close too many doors).
We’ve also taken a deeper look at which services are being introduced in order to meet clients’ changing demands. While I can’t give too much away, I can tell you that data analytics takes the top spot, with 18% adding it as a new service offering by year-end. Teamed with those who already have it on their menu, and a collective 81% of agencies will pitch data analytics as a service by the close of 2020.
Avoiding the hurdles
Our survey results also reveal the challenges that have held – and are continuing to hold – agencies back. Pressure on client budgets and other Brexit-related concerns rank in the top three troubles, but the issue that continues to reign supreme is the battle of talent.
Of course agencies have always been known for their high staff turnover, with stressful client demands and pressure for quick turnarounds eroding the average tenure. But now there’s a new beast nipping at their ankles.
Brexit and that purse tightening we already mentioned has led many clients to bring their marketing back in-house. But this time they recognise that they need to tackle the increased workload with the fast-paced innovation agencies are known for. This time clients are poaching more agency staff in order to deliver it.
There’s a lot to unpack here, as I’m sure you’ll agree. So if you wish to delve deeper, hearing from agency leaders on their success, failures and plans for the year ahead, do give our free report a try. We hope these insights help make 2020 a fruitful and exciting year.
