9+ Marketing Agency Statistics And Trends [2023 Relevant]

I’ve compiled a list of insightful marketing agency statistics; a brief overview is provided below.

Marketing Agency Statistics

50% of businesses hire a digital marketing agency.
There are now 7,761 marketing agency businesses in the US, which is a 17.4% increase from 2021.
The global advertising agency market will grow from $372.55 billion in 2022 to $391.6 billion in 2023.
The average marketing agency net profit margin is 6–12%.
According to 32% of marketing agencies, social media marketing is the most profitable service.
68% of marketing agencies found new clients through social media platforms.
86% of marketing agencies say client reporting is an essential service.
In 2021, marketing agencies reported an average revenue growth of 54%.
Many agencies face a churn rate of upwards of 40%.
The number of digital agencies in the U.S. has grown by 54% from 2018 to 2023.

Sources: (Arora Project, My Codeless Website, Globe Newswire, HubSpot, Search Engine Journal, Search Engine Land.)

Significance of the Data: Very High

Mentioned By: Upwork, Smart Insights, Word Stream, Semrush, Cloudways, Wpforms, Metrics Watch, Clutch, and more.

What does the data suggest	Justification
Majority of businesses are outsourcing digital marketing.	Outsourcing allows for expertise and efficiency.
Firms not utilizing agencies might be lagging behind.	Competitors with agencies likely have a cutting edge.
There’s significant trust in external expertise.	Agencies are seen as valuable assets for success.

Significance of the Data: High

Mentioned By: IBIS World, Statista, Upwork, Semrush, Active Business Growth, Salespanel, Linkedin, Clutch, and more.

What does the data suggest	Justification
The marketing agency sector is growing robustly.	A 17.4% growth indicates a thriving industry trend.
US businesses recognize the value of marketing agencies.	High growth suggests rising demand and trust.
The landscape in 2023 is more competitive than 2021.	More agencies signify fiercer market competition.

Significance of the Data: High

Mentioned By: IBIS World, The Business Research Company, Marketing Edge, Report Linker, Linkedin, Medium, and more.

What does the data suggest	Justification
The global advertising market is on an upward trajectory.	Consistent growth indicates a bullish industry trend.
Businesses worldwide are investing more in advertising.	Increased market value shows rising demand.
The industry is poised for further evolution and innovation in 2023.	Growth often spurs new methods and strategies.

Source: HubSpot

Significance of the Data: High

Mentioned By: Askcody, Omg Center, Parakeeto, Agency Analytics, My Codeless Website, Campaign, Digital Agency Network, and more.

What does the data suggest	Justification
Marketing agencies operate on relatively modest profit margins.	A 6-12% range indicates a balanced, though not extravagant, profitability.
Digital agencies outperform traditional marketing in profitability.	The 20% margin suggests a more efficient or lucrative model.
The digital transition in marketing yields financial advantages.	Higher margins in digital hint at the sector’s future dominance.

Significance of the Data: Very High

Mentioned By: Ippei, Influencer Marketing Hub, Sprout Social, Statusbrew, Semrush, Hubspot, Investopedia, Science Direct, and more.

What does the data suggest	Justification
Social media marketing is a primary driver for agencies.	Almost one-third indicating its success signals dominance.
Traditional marketing services might be lagging.	The prominence of social media suggests shifting paradigms.
Agencies must invest in social media expertise.	The thriving nature of this service demands agency focus.

Significance of the Data: Very High

Mentioned By: HubSpot, My Codeless Website, Sprout Social, Neal Schaffer, Benchmark One, Hootsuite, Simplilearn, Marketing Profs, Capterra, and more.

What does the data suggest	Justification
Social media is a vital lead generation tool for agencies.	Over two-thirds success rate underscores its significance.
Agencies not leveraging social media may miss opportunities.	A majority finding clients this way indicates a trend.
The digital networking landscape is crucial for growth.	Social platforms have become central in business expansion.

Significance of the Data: Very High

Mentioned By: Search Engine Journal, Martech, My Codeless Website, Semrush, Word Stream, Wp Forms, Zoominfo, Khoros, and more.

What does the data suggest	Justification
Client reporting stands central to agency services.	The vast majority viewing it as essential highlights its role.
Agencies without robust reporting may fall behind.	Being a top service, it’s crucial for competitive advantage.
Transparency and data-driven insights are client priorities.	Their significance is marked by agency acknowledgment.

Significance of the Data: High

Mentioned By: HubSpot, Promethean Research, Forbes, Semrush, Insider Intelligence, Group M, Influencer Marketing Hub, and more.

What does the data suggest	Justification
2021 was a remarkable growth year for marketing agencies.	A 54% average increase is indicative of a booming industry.
Agencies adapted and thrived despite global challenges.	Such significant growth suggests resilience and adaptability.
There’s a heightened demand for marketing services.	The substantial revenue increase points to increasing client needs.