Nobody was prepared in the slightest for everything that occurred in 2020, and that includes digital marketing agencies. When initial shutdowns began worldwide, agencies all over the world decreased significantly in revenues.
While 2021 still holds some economic uncertainty, leaders in the digital marketing realm have indicated that their agencies have been remarkably standing strong, according to CallRail’s fall survey of 167 global marketing leaders who use its services. The findings show that most agencies will finish 2020 with higher annual revenues than in 2019.
2021 financial outlook
In the CallRail’s survey, 88% of agencies indicated they are satisfied to extremely satisfied with their agency’s financial health in 2020. Only 3% were extremely unsatisfied. Most agencies also anticipate exceeding their 2019 revenue by the end of 2020, which are in line with the rest of the findings.
As most business shifted from offline to online at a rapid rate, it makes sense that a majority of agencies are succeeding this year financially. The vice president of Avalaunch Media, Kyle Shurtz, shares how his business experienced an increase in financial success, “Because we focus strictly on online advertising, we had more business come through as people shifted from offline to online. We anticipate 2021 to be much more of the same. Our goal is to grow by about 20% year-over-year.”
The value of digital marketing agencies
The key value that digital marketing agencies bring to the table for clients is their strategic value. Being seen as a strategic partner is one of the primary ways agencies can increase their value to clients. Most agencies felt as though they were doing quite well in this area. According to 67% of agencies, the primary reason that clients choose their agency is because they’ve established themselves as strong strategic partners.
The longevity most agencies have with clients is another indicator that clients believed agencies are delivering enough value to continue to use their services. Long-term relationships of two years or more were common for 69% of agencies. Only 4% said the client relationship lasted less than one year.
What this means for 2021
Uncertainty of course remains, but the future looks very bright for digital marketing agencies in 2021. And there seems to be agreement among agencies that even if more lockdowns occur, it likely won’t be a repeat of spring. As agencies look ahead to 2021, there’s every reason to believe they will continue to realize increase revenue, growth in business, and overall strong financial health.
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