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.