Agency Report: Digital rules, growth slows, consultant surge | Agency News - Ad Age - 0 views
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Parts of the agency market are thriving. Consultancies for the first time captured Nos. 6 to 10 on the list of the world's biggest agency companies, and they are well-positioned with deep ties to the C-suite.
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Digital, encompassing everything from creating a Facebook ad to digitally transforming how a marketer interacts with consumers, captured 51.3 percent of 2017 U.S. revenue for agencies of all disciplines, according to Ad Age Datacenter analysis. Digital's share has nearly doubled since 2009.
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Growth is moderating. Agencies' U.S. digital revenue increased 7.0 percent in 2017, compared to growth rates of 8.0 percent in 2016 and 13.5 percent in 2015. Digital media employment rose 7.8 percent in 2017, the lowest growth since 2009.
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U.S. revenue growth slowed in 2017 in every major agency discipline. Revenue for ad agencies barely budged (up 0.3 percent), and revenue for media agencies (excluding digital work) fell 1.6 percent, reflecting a weaker market for traditional agency services.
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Publicis, whose holdings include Sapient Consulting, vowed to spend money on "hiring, training, development and re-skilling" as it focuses on "marketing and digital business transformation." (Number of mentions in a nine-page press release that Publicis issued about its pitch to investors: "transformation," 21; "digital," 13; "marketing," nine; "media," two; "advertising," zero.)
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Consultancies, which already do much work in low-cost markets, are ratcheting up staffing in both the U.S. and abroad. Employment for major consultancies tracked in the Agency Report jumped 33.9 percent in the U.S. and 31.1 percent worldwide.