Why data matters: Understanding the agency sector

In an era of unprecedented technological development and market complexity, accurate data is the most powerful tool for understanding, navigating and strategically positioning organisations. The UK marketing, advertising, creative and media agency sector is ever-changing and diverse; a place where comprehensive data insights can transform how decisions are made.

The problem is that until now it has been impossible to get the full picture of what is going on in the sector. A lack of accurate data and insight means that decisions, from the strategy of individual agencies and investors to policy at regional and national level, have been made without a true and full understanding of what is going on across the industry. 

Here at Agency by Agency, we are providing the first comprehensive benchmarking data and insight into the UK agency sector. But why does it matter?

Data as a navigational tool

Decisions made without robust and comprehensive data are fundamentally vulnerable. For the agency sector, this might mean misaligned strategic investments, bad resource allocation, missed market opportunities, inaccurate competition positioning and flawed talent acquisition and retention strategies. This not only has commercial implications, but there is a human cost too, with added stress and anxiety for those making the decisions.

Strategic insights for key stakeholders in the agency sector

Comprehensive data for the agency sector, as published by Agency by Agency, can serve as a sophisticated navigational instrument. Combined with insight, data can enable stakeholders within the sector to:

• Understand nuanced market dynamics
• Identify emerging trends
• Benchmark performance
• Make evidence-based strategic decisions
• Anticipate sector transformation

It is also important that the sector is mapped, and the data collected and curated, by people who understand the needs of the key stakeholders, and the diversity and complexity of the sector as a whole. 

Small agencies

For smaller agencies, benchmarking data can be used to understand their position in the market. By comparing their turnover-per-head against sector averages, these small teams can identify whether they’re on the right track or if they need to refine their service offering. A boutique UX design agency might discover they’re generating significantly higher turnover-per-head compared to similar-sized competitors, indicating a potential premium positioning strategy.

Founder and director demographic data can help smaller agencies understand broader industry trends. For instance, insights into founder gender across different agency types might inform recruitment and partnership strategies, helping small agencies position themselves as progressive and inclusive.

Medium agencies

For medium agencies, the question is often around growth and scalability. Medium-sized agencies face unique challenges in scaling. Data on headcount, turnover, growth and service specialisation can reveal critical insights. A performance marketing agency might use data to identify whether their current growth trajectory aligns with sector benchmarks, or if they need to adjust their service mix or recruitment strategy.

Innovate UK funding data can also be particularly valuable for medium agencies. Understanding which types of agencies are attracting innovation funding can guide strategic investments in technology, talent and service development.

Large agencies

Larger agencies can use comprehensive data to make macro-level strategic decisions. For agencies looking to grow through acquisition, data can help find other agencies in complimentary niches. GVA (Gross Value Added) metrics provide insights into the economic impact and efficiency of different agency types, helping leadership teams understand their broader economic contribution and competitive positioning.

Detailed headcount and turnover-per-head data allow large agencies to benchmark their operational efficiency. An integrated agency might identify opportunities to optimise team structures or invest in specific skill areas based on sector-wide trends.

Investors

For investors or those looking to acquire agencies, comprehensive data provides market intelligence. An investor might conduct a deep-dive analysis into sector dynamics, identifying agencies with exceptional performance potential, unique service propositions and strategic growth trajectories.

Comprehensive data also enables sophisticated due diligence processes, allowing investors to move beyond traditional financial assessments. By examining metrics such as turnover-per-head, Innovate UK funding and growth patterns across different agency types, investors can identify undervalued agencies with significant potential. For instance, a digital transformation agency showing consistently high turnover-per-head and attracting innovation funding might represent a more compelling investment opportunity than traditional headline financial figures would suggest.

B2B service providers

B2B service providers targeting the creative agency sector gain a strategic advantage through comprehensive market insights. This enables more targeted and effective go-to-market strategies. Companies can map their service offerings against specific agency needs, identifying precise market segments and tailoring their approach based on detailed sector intelligence.

When data allows for sophisticated market segmentation beyond traditional categorisations, a technology solutions provider could use headcount, service type, and investment pattern data to develop highly targeted sales strategies. For example, identifying medium-sized agencies in data and analytics that are showing strong growth and investment in innovation could indicate a prime market for advanced technological solutions.

Industry bodies and policy-makers

For industry bodies and policy-makers, comprehensive data represents a critical tool for understanding the agency sector’s economic and innovative landscape, including insights into workforce dynamics, innovation potential and economic contribution across different agency types and sizes. This enables more informed policy development, reaching potential new members, targeted support strategies and evidence-based decision-making. 

Policy-makers could examine metrics such as company births and deaths, founder demographics, Innovate UK funding and GVA across different agency categories to understand emerging economic patterns. This might inform strategies for supporting sector growth, identifying skills gaps or developing targeted innovation support programmes. For instance, data showing lower representation of certain demographic groups among agency founders could inform diversity and inclusion initiatives.

Agency intelligence. The power of insight.

Agency by Agency provides unparalleled access to the most advanced benchmarking data in the agency sector. Our subscription offering is designed to transform how agencies and other stakeholders in the sector understand, analyse and plan for the future.

Beyond collecting, curating and providing insight on data for the UK marketing, advertising, creative and media agency sector as a whole, Agency by Agency maps the sector in a number of ways.  Our Data Shots offer benchmarking data for agency categories based on services offered:

• Amazon/Marketplace
• Behavioural research and behaviour change
• Brand strategy
• Content
• Conversion
• Copywriting
• Creative and advertising
• Customer experience (CX)
• Data and marketing analytics
• Design and branding
• Digital
• Digital product design
• Digital transformation
• Direct marketing
• E-commerce
• Experiential and events
• Influencer
• Integrated and full service
• Internal comms and employee engagement
• Market research
• Media
• PR and communications
• Search and performance
• SEO
• Social media
• Translation and localisation
• Video and production
• Website and UX/UI design

Alongside our Data Shots, subscribers have access to an ever-growing library of reports and articles, including our Agency by Agency Industry Report as well as specialised reports on specific sector dynamics and thematic articles exploring key trends and questions for the sector.

Working together with partners from across the agency sector, we will offer insights to provide for our subscribers a nuanced understanding of the sector’s complex landscape.

Key data points and their strategic significance

Through a combination of our reporting alongside our benchmarking data, key metrics offer stakeholders access to key information to inform their strategy and future decisions.

Turnover and growth metrics provide more than financial snapshots—they reveal:

• Sector resilience
• Market confidence
• Potential investment opportunities
• Comparative performance across agency types

Headcount, turnover-per-head and demographic data offer insights into:

• Operational efficiency
• Talent market trends
• Potential skills gaps
• Workforce diversity and inclusion

Investment patterns and Innovate UK funding illuminate:

• Sector innovation potential
• Technological adoption rates
• Areas of strategic investment
• Emerging competitive advantages

As we move forward through 2025, we will be working with our partners to continually refine the data we already have available to us, create new categories of agency for our Data Shots based on target market (tourism, automotive, fashion etc), and to increase the number of metrics available including jobs advertised, average salaries and more. 

Bespoke research to answer specific questions

Alongside our key subscription offering and its comprehensive insight, reporting and benchmarking data into the UK agency sector, we also offer agency owners, investors and those offering services to the industry the opportunity to commission research into even truly niche parts of the sector, tailored to specific needs and for exclusive use, including M&A target identification, competitor analysis, regional and local research and more.

Data as a strategic imperative

In an increasingly complex and rapidly evolving business landscape, data is no longer a supplementary tool but a fundamental strategic asset. For creative agencies, investors, service providers and sector observers, nuanced data insights are the difference between reactive adaptation and strategic leadership.

Find out more…

If you would like to learn more about how we get our data and definitions for all the data points we have mentioned in this preview, please check out our FAQs page.

If you would like to read the Spring 2025 Agency by Agency Industry Report in full and gain access to our Data Shots, early subscribers can take advantage of the special launch price of £1,600 excl. VAT here.

If you are intrigued but would like to learn more, you’ll find our schedule of free webinars where we introduce our report, Data Shots and future plans here.