Episode Description: Trends Impacting Agencies in 2023

Welcome to this episode of our podcast, where Drew McClellan and Danielle Nuka McClellan dive into the trends that are currently impacting agencies in 2023. They share valuable insights and key takeaways that can help agencies navigate the changing landscape and provide value to their clients.

Key Takeaways:

• 60% of agencies experienced revenue and AGI growth in 2022, while 15% saw a decrease. This highlights the importance of adapting to industry trends.
• The most profitable work for agencies lies in countable services such as PPC, SEO, media planning, and buying. Ad campaigns and traditional agency work are less profitable due to the challenge of proving ROI.
• PR services have an average billable rate of over $200 per hour, while ad campaigns average around $130 per hour. Understanding these rates can help agencies make informed decisions.
• Over-servicing clients and over-staffing are common challenges that agencies face. Finding the right balance is crucial for sustainable growth.
• Clients are seeking comprehensive solutions and are tired of managing multiple specialist agencies. Agencies should focus on providing a one-stop-shop experience.
• Sales cycles are longer, emphasizing the need for agencies to nurture and grow their existing client relationships.
• Creating loyalty programs and elevating the customer experience are effective strategies for agencies to retain clients and stand out from the competition.
• AI is a powerful tool that agencies should leverage to improve their work and demonstrate value to clients.
• Agencies should assist clients in building zero and first-party data to comply with privacy laws and enhance targeting capabilities.

Overall, agencies must adapt to the changing landscape by focusing on countable services, strategic partnerships, and thought leadership. By understanding these trends and implementing the recommended strategies, agencies can thrive in 2023 and beyond.

It’s that time of year again — we’re going over the top agency trends we’re noticing so far in 2023 and going into 2024. A lot has changed since the last time we went over the data, which means we have a ton of information that you’ll hopefully find valuable and can use as a compass for where to lead your agency through the rest of the year heading into 2024.

As we exit the pandemic era and move into the AI era, there’s a lot to consider in how agencies function regarding what our clients want, how fast our sales cycle moves, how we hire, where we should focus our biz dev, and more.

One thing is certain — many agency owners like you feel re-energized and reinvigorated coming out of 2022. Let this episode be a ray of light that gives you an extra boost of encouragement for the rest of 2023, and keep that momentum going for as long as possible.

For 30+ years, Drew McLellan has been in the advertising industry. He started his career at Y&R, worked in boutique-sized agencies, and then started his own (which he still owns and runs) agency in 1995. Additionally, Drew owns and leads the Agency Management Institute, which advises hundreds of small to mid-sized agencies on how to grow their agency and its profitability through agency owner peer groups, consulting, coaching, workshops and more.

A big thank you to our podcast’s presenting sponsor, White Label IQ. They’re an amazing resource for agencies who want to outsource their design, dev, or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here.

What You Will Learn in This Episode:

• The impacts of recession fears on AGI and revenue
• ROI — the new agency buzzword
• A growing agency trend in having amazing teams
• Rebalancing overservicing and overstaffing issues
• The fading trend of over-specialization of agencies
• The PPC, SEO, and data analyst job boom
• A positive trend in agency owner happiness
• The continued importance of thought leadership and community spaces
• The agency employee trends of 2023
• Embracing AI and using it as a tool for your work