Ad Agency Business Performance so far in '24

This is our latest episode of “3 Takeaways,” our agency new business?video?series where we give you three takeaways to help improve your new business program.

We just released our 2024 RSW/US Mid-Year Progress Report—we surveyed ad agencies and marketers at the end of June as a follow-up to our 2024 New Year Outlook Report in January, and we’ve got some stats to report to you agencies out there.

(You can download our report here RSW/US 2024 Mid Year Progress Report.)

The first stat comes from this question we asked agencies:

How was your business performance in the first half of ‘24 versus the first half of ‘23?

Happy to report 62% of agencies said there was some improvement, or it was significantly better.

2023 was rough, and agencies needed this. So let’s dig into some of the reasons behind this stat, and a few things to be aware of for the rest of the year.

Sales pipelines increased ??

One agency in our survey report responded with,

We have a solid sales pipeline again.

We’re not out of those 2023 woods all the way yet, but if your agency is not actively pursuing new business, you need to start yesterday, because pipelines are generally stronger so far in 2024.

Specialized agencies are in a better position ??

One agency responded,

We have really honed our niche and are actively promoting it. Starting to see returns!

I’ve said it before in this series, specialization doesn’t mean you only focus on one vertical.

But you do need focus, that’s what prospects are looking for.

Mixed project sizes and client spending caution ??

Not all roses and rainbows at this point.

Activity is increasing, but some agencies are experiencing a mix of larger and smaller projects.

One agency said,

More activity, but with smaller projects to supplement, while working to retain all our current clients.

Despite an increase in leads and pipeline, some agencies are still seeing slower deal closures, reminiscent of 2023.

One agency noted, “Greater lead volume and pipeline activity, but still slow to close.”

Look, if nothing else, you've got to take advantage of what's coming in the rest of 2024, and you've got to get that business development strategy and process in place as soon as possible.

So, again, not completely out of the 2023 woods yet, but there are definite signs of optimism at this point in the year.

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