Cision PR Newswire
Amidst Uncertainty, Advertising Agencies See Bright Spots and Warning Signs in 2023
News provided byRSW/US
Jan 25, 2023, 6:00 AM ET
CINCINNATI, Jan. 25, 2023 /PRNewswire/ -- RSW/US, the nation's #1 outsourced agency business firm for marketing agencies, released its annual 2023 New Year Outlook Survey Report.
Download the report here.
Economic uncertainty rears its head in several of the report's stats, along with the continuing tradition of the often-divisive symbiotic advertising agency/marketer relationship.
If there's an early theme for advertising agencies at this point in the year, it's caution.
Interestingly this doesn't seem to be the theme for marketers. The number of marketers planning to invest in non-marketing spending in 2023 (59%) jumped 38% points compared to last year, very different from agencies who dropped 20 points in their enthusiasm for investment.
In another example, 61% of marketers said they expect marketing spend to increase somewhat/significantly in 2023. Only 36% of agencies believe their clients will increase marketing spending somewhat/significantly. (A 37-point drop from last year.) So maybe better news for agencies than they realize!
And on the agency business development front, two interesting stats: marketers continue to look for specific expertise from their agencies, with 92% saying category expertise will be very/moderately important when considering new agencies in 2023, and almost half (44%) of marketers report they learn about agencies via direct agency outreach.
So, what does this mean for marketers and agencies in 2023?
There are many reasons for agency optimism: marketer spending expectations, in-house agency decreases, and the consensus from marketers that agencies are staying on top of trends, as noted in the report.
A certain level of caution on the agency side is warranted, but along with taking precautionary steps based on the economy, agencies can't ignore the need for an ongoing new business, organic growth, and client retention plan.
One thing we saw affecting small and mid-sized agencies in the back half of 2022 was an overall slowdown in ongoing client-work, it took a lot longer to get projects going, or started.
2023 will be a real proving ground in terms of remote work, agency culture, and establishing protocols and strategies that ensure a strong flow of new business and solid productivity, as well as a healthy, challenging and satisfying work environment.
RSW/US is the nation's leading outsourced agency new business development firm. To learn more visit www.rswus.com.
Contact: Lee McKnight Jr.