95% of agencies met or exceeded their 2021 revenue goals by focusing on profitable service offerings.
Will 2022 be another great year for agency growth?
We believe this will be the case, especially whether your agency matches and exceeds what your competitors can do.
In this article, we are going to share the key findings of CallRail 2022 Outlook for Digital Marketing Agencies report that will help you grow your agency and stay ahead of competing agency trends.
1. 86% of agencies added a new service offering – you should too.
To stay competitive, agencies shifted to their most profitable service offerings and added new services to meet their clients’ needs.
In 2021, the service offerings considered to be the most popular were:
- Social media marketing (reported by 34% of agencies).
- Full-service digital (29%).
- Website design and development (25%).
While website design and development lost popularity from 2020 to 2021, it remains the third most popular service over the past two years.
Social media marketing and full-service digital took first and second place for the most popular services of 2020, SEM/paid advertising and SEO.
Why are agencies adding these services?
The increase in the number of social media users last year is a likely explanation for the shift in focus from SEM services to social media marketing.
According to the latest social media statistics, 400 million new people signed up on at least one social networking site in 2021.
This information can help your agency discover what services your competitors can add, allowing you to add them as well.
2. 32% of agencies say social media marketing is the most profitable service
Consider adding social media marketing to your agency’s service offerings, if you haven’t already.
In addition to being the most popular service offering, social media marketing is also considered the most profitable service offering by 32% of agencies.
This is followed by full-service digital (reported as the most profitable by 28% of agencies) and website design and development (24%).
3. Agencies spend 20 hours on marketing strategies every week per client
Does your agency spend too little time on your clients’ strategies?
Agencies reported spending an average of 20 hours per week on marketing strategies and tactics per client.
What about the other time spent managing customers?
Agencies reported spending on average:
- 76 hours for account management and communications.
- 56 hours for reporting.
- 4 p.m. for the administration of the agency.
These numbers can serve as a benchmark for your own agency’s productivity and ROI.
Do you think your clients’ accounts could perform better? Check your time spent against these benchmarks.
While finding more efficient ways to manage and communicate with customers would help ROI, the number of hours spent reporting can have a positive effect.
4. 86% of agencies listed client reports as an essential service
In terms of customer growth, reporting is crucial.
Agencies that did not meet or exceed client growth targets were 15% less likely to consider client reporting an essential service.