I’ve been rummaging around the data underpinning this year’s B2B Agencies Benchmarking Report and was pleased to see how healthy the agency community is.
Ask agency leaders (we spoke to 75 of them from the UK’s leading players) about their commercial performance in 2016 and the response is overwhelmingly positive. 62% describe it as ‘good’ and a further 26% report that it was ‘strong’. Their financial numbers reflect this confidence. 85% of agencies have grown revenues year-on-year, with an average increase in Gross Income of 9% and an average rise of 31% in Net Profit. To fuel this, the number of people employed by agencies has jumped by 19% year-on-year.
Things might be rosy just now, but is BREXIT about to disrupt the agency world?
Of course, nobody knows but most agencies seem confident that they’ll remain strong in a post-BREXIT world. 80% report that BREXIT has had no impact on the growth of their business so far, and only 35% feel less confident about their future growth prospects because of it. This optimism is understandable when we consider that whilst most agencies (59%) have some overseas income, the average agency reports that just 16% of their revenue originates from outside of the UK.
Let’s hope that the optimistic majority are proven right.