‘Digital agencies forced to up their game as brands take more control’

Growing brand capability in and knowledge of digital marketing, as well as an increasingly technology-driven market, is putting digital agencies under increasing scrutiny, according to a new report.

The Top 100 digital agencies 2015 report from Econsultancy found that the average fee income at the UK’s biggest agencies increased by 25% last year while the total fee income of the top 100 increased by almost 15% to nearly £1.7bn.

The positive outlook continues into next year, with 74% of agencies questioned say they are “very optimistic” this year and more than a quarter of the top 100 projecting their fee income will rise by at least 30%.

Ashley Friedlein, Econsultancy’s founder, says: “This is a positive sign for an industry that has had to face a number of challenges brought about by a rapidly developing technological environment.”

Despite the growth in fees, agencies report that clients are asking “more searching questions” than before and increasingly moving functions in-house. They are also facing growing competition from tech firms such as Google and Facebook.

Friedlein adds: “Agencies have had to up their game. They have broadened the services they offer, recruited the best talent and adjusted their propositions to meet the requirements of a new breed of marketer.”

The full report, interactive version and agency navigator can all be accessed by visiting digitalagencies.econsultancy.com.

Econsultancy is a sister publication of Marketing Week.

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