Bending, Not Breaking: State of Digital Services 2024

We could tell 2023 was tough while we were in it, but now that the numbers are in, it’s clear that it was the most difficult year for agency growth since we began tracking back in 2015.

Some firms avoided this general downturn and managed to grow 2-3x faster than average. The first section of this report explores the patterns those fast-growing firms shared.

In later sections, we explore profitability and margin drivers and key trends shaping the agency landscape.

A 39-page exploration of what drives digital agencies in 2024. Topics include:

• Revenue growth rates
• Service mix shifts
• Service mix and vertical specialization
• Pricing levels and methods
• Clients and projects
• Profitability and margins
• Efficiency and utilization
• Team dynamics
• Artificial intelligence impact
• Artificial intelligence implementation
• Biggest agency challenges
• In-housing concerns

This report is a compilation of responses from digital agency owners and managers, primarily from North America. An online survey was conducted of digital service company owners during June 2024 to collect insights across many key performance indicators.

• We received a total of 96 responses.
• Average size: 31 employees
• Median size: 18 employees