Agencies are facing daunting challenges with confidence

Wix Hosting
(Image credit: Wix)

Wix, one of the best website builders, teamed up with Agency Hackers to create a report sharing new insight on the future of marketing and digital agencies based on input from more than 80 agency leaders. The new Agency Forecast Report points to some of the biggest issues and opportunities in the industry, which the report found agencies are meeting with great confidence. 

In fact, the overall confidence among agencies according to the leaders surveyed is 6.6 out of 10. That may be because of how they feel that there are solutions to current challenges, even as those obstacles loom in the months ahead. One very popular plan is to expand their businesses into new areas, with nearly two-thirds, 62%, of respondents reporting doing so. 

“Agencies today are navigating a landscape that demands adaptability, creativity, and strategic foresight, and this report explores how leaders are finding their footing in this fast-paced, ever-changing landscape,” said Kobi Gamliel, Head of Agency Growth at Wix Studio. “Identifying future trends is vital for an agency's success, and at Wix Studio we're helping them to stay ahead of the curve by innovating new products that not only help agencies keep pace with industry changes, but also elevate the quality and efficiency of their output. 

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Going after new businesses, however confidently, requires having the right people on the team. That's where agency leaders are struggling, with talent acquisition and retention cited as a critical issue by 72% of respondents. Finding people with the right talents and figuring out how to get them to join and stay with a company is a crucial task, one that has become both more vital and difficult. 

Things only get more complicated with the changes in client behavior explained in the Agency Forecast Report. Leaders from 55% of the agencies said there is more demand for shorter contracts and project-based work rather than long-term retainers. Clients want flexibility and are wary of commitment for whatever reason, leading to more difficulty planning at agencies, especially when they have to keep in-demand talent onboard for the next project. 

The same percentage of agencies is making relationship-building with current clients central to plans to try and encourage deeper, longer commitments on the business front. Attracting clients interested in those long-term arrangements is also why three-quarters of the agencies surveyed plan to increase investment in marketing to attract new business and strengthen brand presence. 

These strategies are working for some agencies. The report found that 42% of agencies claimed revenue growth over the last six months, likely tied to demand for digital services. As digital transformation accelerates across industries, agencies are under pressure to not only keep up with these changes but also to leverage new tools and technologies to improve their service offerings.

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Eric Hal Schwartz
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Eric Hal Schwartz is a freelance writer for TechRadar with more than 15 years of experience covering the intersection of the world and technology. For the last five years, he served as head writer for Voicebot.ai and was on the leading edge of reporting on generative AI and large language models. He's since become an expert on the products of generative AI models, such as OpenAI’s ChatGPT, Anthropic’s Claude, Google Gemini, and every other synthetic media tool. His experience runs the gamut of media, including print, digital, broadcast, and live events. Now, he's continuing to tell the stories people want and need to hear about the rapidly evolving AI space and its impact on their lives. Eric is based in New York City.

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