Cincinnati, September 15, 2022 /PRNewswire/ — RSW/US, the nation’s leading outsourced business development firm for marketing agencies, has completed its annual RSW/US 2022 Agency New Business Report.
Over the past two years, this RSW survey and resulting report have found that many small and medium-sized agencies are growing or regaining lost growth from the previous year. This year we found an agency in a more difficult situation. For example, the agency reports an 11% drop in organic growth in 2022 as an effective way to generate new business for advertising agencies. Also, only 32% of agencies said they saw an increase in the number of new business opportunities in 2022, compared to 51% in 2021.
Another indicator that the new business environment is getting more difficult: Only 28% of agencies say it will be harder or more difficult to get new business in 2021 (compared to the previous year) was. It will rise to 43% by 2022.
It’s a sign of the difficulty of driving new business this year, with agencies not investing in developing “new” new business.
This is demonstrated by the low percentages (all less than 15%) attributed to phone calls, social media, inbound, and traditional mail.
Some other key statistics that explain this growing difficulty and illustrate the lack of strategic planning for “new” new businesses:
- 55% of agencies say it’s harder to get leads than last year.
- Agencies reported that their last new hire was very or somewhat successful, down from 60% in 2021 to 41% in 2022.
- In 2021, hiring of new business director positions at one agency will drop to its lowest level since 2010, with only 32% of agencies hiring new business directors in the past three years. By 2022, this figure will be 32% again.
The growth that many companies achieved in 2021 and 2022 should be applauded, but change is happening all the time in this industry, and existing growth appears to be slowing. As we head into 2023, it’s critical that agencies have a manageable framework for ‘new’ new business.
RSW/US is the nation’s leading outsourcing business development group, helping marketing agencies find meaningful new business opportunities and close deals. For more information, please visit www.rswus.com or call us. Lee McKnight Jr. at 513-559-3111.
contact: Lee McKnight Jr.
Email: [email protected]