77% of all respondents forecast growth for their agency in 2016.
Our research captures insights and forecasts from senior stakeholders in agencies on trends, challenges and opportunities within the industry.
There has been a very significant change in levels of confidence. The shift in the four years we’ve been doing this research is dramatic. In 2013 the first year of our research, nearly half of all agencies predicted a decrease in turnover. In 2016 no agency has. In fact 74% feel turnover in the industry generally will increase.
Challenge: Finding and retaining talent.
Given the level of staff churn and changing skillset needs of agencies, this is a constant challenge.
Retention of clients in a procurement-dominant environment. Retention of staff in a growing market. Ever-increasing competition from media agencies to management consultancy firms to accountancy practices.
Hiring world class talent. Ongoing trend of cost inflation exceeding revenue inflation. Timesheet and billable hour still the dominant culture. Access to world class freelance talent.
Brexit. Pressure from procurement to drive down rates / increase rebate values.
Development of new services
Opportunities to increase our revenue due to strong pipeline for new business along with developing our digital/data/research offerings to clients. Being able to provide end to end digital media and creative solutions to clients.
Strong pipeline. Clients with a real desire to invest and innovate in the work and in the commercial models they have with their agencies.
Growth of local business through digital media. Would add opportunities from clients looking for a more integrated agency approach across disciplines which benefits agencies like ours.
Extended credit terms, clients retaining all types of credits/discounts and driving down commission rates. The race to the bottom by certain other agencies is driving these down and undervaluing the talent within agencies.
Much smaller client marketing teams, and a much greater focus on brand positioning and story telling.
Trend for clients to want to retain certain functions in house in the area of digital and social. Clients are demanding value and return on investment for their spend, seeking value added proposals and increased transparency.