Marketing Agency Metrics

Goals

Determine data and insights on the financial position of marketing agencies. The information will be used to get benchmarks of industry norms for a competitive analysis.

Early Findings

Marketing Agency Metrics

  • According to the owner of Brave Inc., a marketing agency in Detroit, "Wins By Lead Source" is a crucial key performance indicator (KPI) for them.
  • This KPI monitors the source for each lead that converted into a sale.
  • For the Eisan Agency, its CEO stated that the only KPI that is critical is the "bottom line profitability percentage."
  • For the founder of the LoSoMo Inc. agency, cost per acquisition (CPA) is the only KPI that can really make a mark.
  • The other engagement metrics do not actually matter if there are no leads or revenues in the end.
  • The average net margin of advertising agencies in the US is 7.08%.
  • Approximately 90% of agencies have less than 50 employees.
  • The average agency's profit margin is around 18%.
  • Large agencies with more than 50 employees and studio-sized firms with less than ten employees are the segments that have the highest profit margins.
  • For 2019, agency revenue has increased by 15% compared to the previous period.
  • Large agencies with more than 50 employees are the fastest growing segment with more than 30% revenue growth.

Proprietary Database Search Results

In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.

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