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.

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