{"product_id":"state-of-digital-services-2026-an-uneven-return-to-form","title":"State of Digital Services 2026: An Uneven Return to Form","description":"\u003ch1\u003eState of Digital Services 2026\u003c\/h1\u003e\n\u003ch2\u003eAn Uneven Return to Form\u003c\/h2\u003e\n\n\u003cp\u003eAverage digital agency revenue grew \u003cstrong\u003e7.5% in 2025\u003c\/strong\u003e, a welcome improvement but still only about half the industry's long-run average. Growth expanded unevenly: Large agencies rebounded sharply, Studio and Medium shops posted healthy gains, and Small agencies grew the slowest.\u003c\/p\u003e\n\n\u003cp\u003e\u003cstrong\u003e119 agency leaders surveyed · Fielded February 2026 · 74% U.S. · 40 pages\u003c\/strong\u003e\u003c\/p\u003e\n\n\u003ch3\u003eTop findings\u003c\/h3\u003e\n\u003cul\u003e\n  \u003cli\u003eAgencies that reduced services grew the fastest at 13%. Those that expanded grew 9.8%, and those that held steady grew 5.7%.\u003c\/li\u003e\n  \u003cli\u003eSpecialization remained the rule, with 86% of shops identifying as specialists. For the first time, service generalists outperformed service specialists on profitability. The 18% net margin posted by the service-generalist \/ industry-specialist segment came from agencies that made up only 8% of total responses, which the report flags as a sample-size caveat.\u003c\/li\u003e\n  \u003cli\u003eThe share of agencies using value-based pricing shrank from 31% in 2024 to 18% in 2025. Those still using it saw significantly lower average growth rates.\u003c\/li\u003e\n  \u003cli\u003eNet margins slipped to 13% in 2025 from 14% in 2024. Studio shops again led at a standout 19%; Dev. Agencies trailed at 11%.\u003c\/li\u003e\n  \u003cli\u003eAverage employee growth was negative for a second year in a row at -2%, with Studio agencies seeing an average decline of 7%. Average blended turnover fell to 19% in 2025 from 23% in 2024.\u003c\/li\u003e\n  \u003cli\u003eAbout a third of agencies have already implemented AI across their businesses, and another 28% are currently implementing. Copywriting and coding remain the most mature use cases.\u003c\/li\u003e\n  \u003cli\u003eM\u0026amp;A sentiment landed at an almost completely even split between buying and selling. Design Agencies were the only archetype looking to buy more than sell.\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003ch3\u003eInside the report\u003c\/h3\u003e\n\u003col\u003e\n  \u003cli\u003eExecutive Summary\u003c\/li\u003e\n  \u003cli\u003eIntroduction\u003c\/li\u003e\n  \u003cli\u003eGrowth Dynamics\u003c\/li\u003e\n  \u003cli\u003eProfitability \u0026amp; Efficiency\u003c\/li\u003e\n  \u003cli\u003eKey Trends\u003c\/li\u003e\n  \u003cli\u003eMethodology \u0026amp; Demographics\u003c\/li\u003e\n\u003c\/ol\u003e\n\n\u003cp\u003e\u003cstrong\u003eFormat:\u003c\/strong\u003e 40-page PDF report, single-license use.\u003c\/p\u003e\n\n\u003ch3\u003eMethodology\u003c\/h3\u003e\n\u003cp\u003e119 completed responses from digital agency owners and managers, fielded February 2026. 74% United States, 12% Canada, 8% Europe, 3% Asia-Pacific, 3% Middle East\/Africa and Latin America combined. Average agency size 31 FTE; median 13 FTE.\u003c\/p\u003e\n\n\u003ch3\u003eAbout Promethean Research\u003c\/h3\u003e\n\u003cp\u003ePromethean Research has tracked the digital agency industry since 2015. The State of Digital Services is our annual benchmark for agency leaders making decisions on growth, pricing, margins, staffing, and M\u0026amp;A.\u003c\/p\u003e","brand":"Promethean Research","offers":[{"title":"Default Title","offer_id":43022086275135,"sku":null,"price":195.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0576\/5280\/5695\/files\/Slide1_c43fb62f-554f-48a6-9115-9cdf42430374.png?v=1773869126","url":"https:\/\/research.prometheanresearch.com\/products\/state-of-digital-services-2026-an-uneven-return-to-form","provider":"Promethean Research","version":"1.0","type":"link"}