Hang on, business growth for many small and midsize ad agencies might be a struggle in early 2024.
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A recent survey paints a grim picture, with a whopping 58% of agency new business pros admitting they're finding it harder to get their hands on potential clients compared to last year. In 2020, that number was a more manageable 28%. Yikes!
At a Mirren CEO Summit panel, Meghan McDonnell, owner and prez of Pile and Company, told Adweek that next year's gonna be a doozy. "It's still gonna be a tough year," she warned. "There's a lot of things happening next year that are leading to uncertainty."
Now, let's dive into some details about what's causing this potential headache:
- Economic instability: The ad biz has its own set of troubles, from geopolitical turmoil leading to careful client spending, to uncertain economic conditions affecting overall investment in new campaigns and services.
- Technological hurdles: The tech landscape is evolving faster than the speed of light, with AI and other advancements demanding hefty investments in tools and skills. Smaller agencies might struggle to keep up, making it a difficult feat to compete with their mammoth counterparts.
- Operational blunders: Many agencies are still stumbling over inefficiencies in their operations, which can limit their ability to manage new business opportunities effectively, leading to wasted resources and grumbly clients.
- Client budget woes: Budget constraints are nothing new for clients, and they can restrict their spend on advertising services. Smaller agencies feel the pinch when clients tighten their pursestrings.
- Competition from big dogs: Bigger agencies boast more resources to sink into cutting-edge technology and talent, making it a challenge for smaller agencies in the race for securing new business and growing their empire.
The prospects for small-business ad agencies in early 2024 could be discouraging, as a survey shows a significant increase in difficulty finding potential clients, with 58% of agency professionals admitting this compared to 28% in 2020. Meghan McDonnell, the owner and president of Pile and Company, warned at a Mirren CEO Summit panel that next year may still be a tough year, largely due to economic instability and uncertainties arising from various factors, including geopolitical turmoil and small-businesses' inability to keep up with technological advancements in the finance sector. Small-business ad agencies might struggle to compete with larger agencies that have more resources to invest in cutting-edge technology and talent, exacerbating the issue.
