A special report into agencies whose primary focus is social purpose, sustainability and making a positive impact

With our first data update in June 2025, we will be adding a new subsector to our collection of Data Shots – Social purpose and sustainability. Ahead of the update, we decided to take a closer look at the agencies that make up our newest subsector with a report exclusive for our subscribers. But before we could write the report, we had to map the subsector. So how did we do it and what did we find?

It’s actually about people

You’d be forgiven for assuming that, as a data-driven company, Agency by Agency is purely here for the numbers: growth percentages, employee counts, turnover and all the other metrics upon which we build our reporting. But our mapping of the agency sector also throws light on the language, actions and values of agencies. And behind all of these agencies are people. People with differing intentions, motivations, goals and ways of measuring success.

Throughout the year we spent curating our lists of agencies across the different subsectors, we explored tens of thousands of agency websites and talked to hundreds of different people from across the sector, and one thing that really stood out was the sheer number of them who are out there trying to do some good in the world.

Purpose vs profitability?

The idea behind our newest subsector – Social purpose and sustainability – was born out of these stories, especially as we began mapping the agencies and realised that there were a good number of them that did not belong in any of the other 28 subsectors we have analysed up to now. Beyond the unique nature of the offer, some of the data that emerged also had us sit up and take notice.

One key takeaway from our Social purpose and sustainability report is that these 211 agencies as a cohort have a higher growth rate than any of the other 28 subsectors we have mapped. As anyone reading this probably knows, we are in a tricky economic climate right now, and the anecdotal evidence suggests that agencies are moving away from purpose as a primary driver of what they do. However, our data suggests that perhaps this move is misguided: the agencies we have mapped in our Social purpose and sustainability subsector are not only surviving, but thriving.

How we map agency subsectors

Mapping a list of companies that fit within any of our subsectors involves using a combination of machine-learning technology supported by The Data City’s Explorer platform, and human instruction and direction. The tools are guided by our team of industry experts by finding and showing the kinds of agencies we expect to see within the subsector.

This involves our team scrutinising thousands of agency websites, eliminating inaccurate results and promoting model companies, step-by-step perfecting the list. This then goes through a quality assurance process undertaken by a different member of the team, where any remaining unsuitable agencies are removed and data or URL mismatches are corrected before the subsector is analysed.

Mapping Social purpose and sustainability

So how did we decide if an agency was an ideal candidate for our Social purpose and sustainability subsector? We were deliberately and unashamedly selective. Having B Corp certification, an ESG policy or ethical company values were a good start, but an agency had to go beyond that to make the grade. Their primary focus has to be doing social and/or environmental good. 

Mindful of greenwashing, we dug beyond the homepage. Agencies were excluded if their client lists or campaigns did not reflect their “for good” narrative. We were cautious when analysing the language that was used. For example, ‘purpose-led’ or ‘values-driven’ don’t always mean what you might initially assume.

Our list includes agencies who only deliver environmentally or socially positive campaigns, sustainability and impact agencies, behaviour change agencies who run campaigns for social good, agencies who solely work for charities and not-for-profit organisations (not just as part of their offer), and agencies who have made a commitment to exclusively work with ethical clients.

The heart of the matter

We ran one final sense check before adding an agency to the list; if we were looking for a job in an ethical company, would this agency fit the bill?

One of the things we noticed during the work to map this subsector is that fact that although there are a number of awards out there for social purpose and ethical campaigns, it is noticeable that many of these awards go to large, networked agencies who have run a social purpose campaign but don’t have it at the core of what they do. This leaves smaller agencies, who work in this sphere day-in, day-out, without the recognition they deserve.

Our Agencies for good: Social purpose and sustainability report highlights the economic impact these agencies have, how many people they employ and shows that there are different ways to measure success.

Key findings from our Social purpose and sustainability report

Our Social purpose and sustainability report explores the subsector in detail, comparing it to other subsectors we have mapped and the agency sector as a whole. Some of the key findings include:

• Social purpose and sustainability agencies have a much higher proportion of women-founded and women-led agencies 
• The subsector has a much more even spread of agency sizes 
• Only four other subsectors (of 29) are more London-centric than Social purpose and sustainability agencies
• The subsector has the highest growth rate of any of the 29 subsectors we have mapped.
• The subsector has a much higher proportion of Innovate UK grant funding when compared to its size within the agency sector
• In key financials, such as average turnover, turnover-per-head and GVA-per-head, the subsector underperforms compared to the agency sector as a whole
• This speaks to the fact that within the Social purpose and sustainability subsector, success is measured in other ways than financial results, such as social impact

In the report we explore how Social purpose and sustainability agencies measure success as well as raise questions for all agencies who are interested in adding a greater emphasis on social purpose and sustainability to their own operations.

Find out more…

Get full access to our Agencies for good: Social purpose and sustainability report by subscribing to Agency by Agency here. We have a range of subscription options available including special rates for agencies with a headcount of 1-2 people.

Buy Agencies for good as a one-off report, without a subscription.

If you have specific questions you’d like answering, our commissioned reports and bespoke research can help, tailored to your needs and for your exclusive use. You can find out more about our bespoke research and all our products here.

You will find information about all our data points within the report. For an overview of our methodology, the work with our partners at The Data City, and a glossary of definitions for all our data points, please take a look at our FAQs page.

The first ever comprehensive mapping of independent agencies in the UK, including subsector specialisms, regional clusters, performance measures and growth rates for all agency types.

With the publication of IndieNation: Uncovering the UK’s independent agency landscape we have comprehensively mapped more than 25,000 independent agencies to explore the complexities of the sector, from agency size and performance to subsector specialisms, regional talent clusters, growth rates, investment and innovation.

Our IndieNation report is available now for Agency by Agency subscribers or via a single report purchase.

“Independent agencies are the beating heart of the UK’s creative economy. The IndieNation report shows how they account for 99% of the market, driving innovation, jobs and regional growth. But too often, they’re overlooked by clients chasing big names and fixated on multinational agencies. If we want a resilient, future-proof sector, it’s time for clients and the industry to value independence as a strategic asset.”

Stephen Waddington / Director, Wadds Inc.

Executive summary

Independent agencies in the United Kingdom make up 99% of all active agencies, employ 88% of all workers in the agency sector, and contribute 87% of total agency GVA to the UK economy. But the importance and impact of the independent agency sector goes much deeper than these headline figures, as is explored in our report. Our key findings are:

• The average growth rate for independent agencies is higher than for the sector as a whole
• New independent agencies are still being founded, but the rate has slowed since a peak in 2019
• Independent agencies come in all sizes, from nano agencies with 1-2 employees to large agencies with a headcount of 251+
• The size of independent agencies has an impact on performance, when measured by average turnover, turnover-per-head, GVA-per-head and growth rates
• Independent agencies have been mapped across 28 subsectors based on specialism
• Productivity and growth varies across the different subsectors, with some outperforming the sector averages quite considerably
• Independent agencies are located throughout the UK with subsector variance when it comes to number of agencies and employees
• London remains vitally important within certain subsectors, but elsewhere regional talent clusters can be observed
• The proportion of women-led and women-founded independent agencies are similar to the sector as whole, but the proportion of women directors is lower in independent agencies
• The independent agency sector attracts the vast majority of agency investment and innovation funding 
• Investment and innovation funding is not flowing uniformly across all subsectors

IndieNation: What’s inside…

Inside our first ever report into the UK’s independent agency sector, we explore the following:

• Definition and impact of independent agencies
• The development of the independent agency sector
  • New agencies founded
  • Growth across the independent agency sector 

• Size of independent agencies
  • Number of independent agencies by size (measured by headcount and turnover)
  • The independent agency sector by size (proportion of independent agencies, employees and total turnover)
  • How size shapes performance (average turnover, turnover-per-head, GVA-per-head, growth rates)
• Independent agency subsectors
  • Number of independent agencies by subsector (based on 28 specialisms, from Amazon/Marketplace to Website and UX/UI design)
  • Total independent agency employees by subsector
  • Subsector productivity (GVA-per-head)
  • Subsector growth rates
• Regional distribution of independent agencies
  • Number of independent agencies by location (UK regions)
  • Regional growth rates and productivity (GVA-per-head)
  • Independent agency subsector clusters (specialisms by region based on number of agencies and number of employees)
• Women in the independent agency sector
  • Percentage of women-founded agencies, women-led agencies and women directors
  • Women in independent agency subsectors 
• Investment and innovation funding
  • Total investment funding and Innovate UK grant funding across the independent agency sector
  • Investment and independent agency subsectors
  • Innovate UK grant funding and agency subsectors

What people are saying…

“Independent agencies dominate the UK’s creative economy, but dominance doesn’t guarantee future success. While growth rates outpace the sector, new agency formation is slowing, and while regional hubs like the North West and Scotland are thriving, London still hoards opportunity. Women founders are slightly overrepresented compared to the sector as a whole, but leadership remains stubbornly male… a missed competitive advantage. The most telling story of the report is that niches like brand strategy prove that specialisation wins. The message of the IndieNation report is clear: Beware the slowing of start-ups, and mind the diversity gap and uneven investment.”

Robert Craven / Managing Partner of GYDA

“The IndieNation report reinforces what we see every day at Agency Folk – independent agencies are the backbone of the industry, yet they face significant challenges in scaling sustainably. While growth is strong, especially in regions outside London, many agency leaders struggle with operational efficiencies, securing investment, and finding the right peer support. The report highlights the diversity of specialisms, but what’s missing is a stronger infrastructure for collaboration. More than ever, ambitious agency leaders need networks, shared insights, and real-world strategies to turn potential into long-term success.”

Michael Murdoch / Founder of Agency Folk

“The Alliance welcomes these findings as it supports what we have been championing, amplifying and supporting – that independent agencies are the backbone of the marketing and communications industry in the UK. With over 25,000 independent agencies making up 99% of the sector, contributing nearly a quarter of a million jobs, and a GVA of £17.8bn to the UK economy, they can no longer be considered as the little sister of the sector but a force to be reckoned with, particularly if they are part of our combined Alliance. With over 11% of those agencies growing at a rate of 20% or more, and an all-time high in client satisfaction, the time to be independent is now!”

Helen Anderson / Executive Director, Alliance of Independent Agencies

“Refreshing and validating to finally have data showing that small and micro agencies build the very foundations of our sector. For too long nano agencies with 1-2 employees have been disregarded when it comes to support, despite a £1.3bn GVA contribution to the UK economy. As a champion of the lifestyle agency, I’d love to see additional mapping of the 85.9% of agencies between 1 and 10 employees, to understand what percentage of these are making a conscious decision to stay intentionally small – rebutting the forced narrative that growth of headcount is always the ultimate goal.”

Kelly Molson / Agency Advisor

Find out more…

Get full access to our IndieNation: Uncovering the UK’s independent agency landscape by subscribing to Agency by Agency here. We have a range of subscription options available including special rates for agencies with a headcount of 1-2 people.

Buy IndieNation as a one-off report, without a subscription.

If you have specific questions you’d like answering, our commissioned reports and bespoke research can help, tailored to your needs and for your exclusive use. You can find out more about our bespoke research and all our products here.

You will find information about all our data points within the report. For an overview of our methodology, the work with our partners at The Data City, and a glossary of definitions for all our data points, please take a look at our FAQs page.

It is accepted that this is a tough time to launch an agency, but despite a slowdown in the number of new agencies founded (see our Agency by Agency Industry Report, Spring 2025), some 2,710 of the agencies we have mapped were founded since 2022 – 10.7% of all active agencies across the sector. But what type of agencies are they, and which subsectors are growing the most quickly when it comes to agencies being founded?

Mapping the new agency generation

At first glance, when looking at the agencies founded since 2022 we can see similar patterns to the sector as a whole. The subsector with the highest number of new agencies is Website and UX/UI design, with 1,069 agencies born over the past three years. This is the largest subsector we have mapped overall, with 8,327 agencies – 32.96% of all agencies in our mapping.

But there are some differences. Agencies offering Design and branding services make up the third largest subsector when we look at the sector as a whole, but only comes fifth when we look at only the new agencies. Digital and Market research are lower in the table of new agencies founded compared to all agencies, while SEO and Social Media are higher.

Subsector share across all agencies

We can explore this trend in a little more detail when we look at the percentage of all new agencies by subsector when compared to each subsector’s share of the agency sector as a whole.

Here we can see the subsectors that have a higher share of the new agencies compared to their share of the overall agency sector. Notable examples include:

SEO: 20.1% of new agencies compared to 10.4% of all agencies.
Amazon/Marketplace: 1.1% of new agencies compared to 0.6% of all agencies
Digital product design: 13.1% of new agencies compared to 7.7% of all agencies
Conversion: 0.6% of new agencies compared to 0.4% of all agencies
Influencer: 1.6% of new agencies compared to 1.1% of all agencies

The subsectors with a lower share of new agencies compared to their share of the overall agency sector include:

Market research: 1.6% of new agencies compared to 3.1% of all agencies
PR and communications: 5.7% of new agencies compared to 11% of all agencies
Design and branding: 10% of new agencies compared to 19.2% of all agencies
Internal comms and employee engagement: 0.3% of new agencies compared to 0.6% of all agencies
Video and production: 4.9% of new agencies compared to 8.2% of all agencies

Subsectors with the highest proportion of new agencies

When looking at each agency subsector individually, we can also see which specialisms have the highest number of new agencies. Amazon/Marketplace leads the way with 21.2% of all agencies in the subsector founded since 2022, followed by SEO (20.7%), Digital product design (18.2%), Influencer (16.4%) and Behavioural research and behaviour change (16.1%).

Some of this will be influenced by subsectors having a low number of agencies in total, in which case a handful of new agencies could have a big impact. Behavioural research and behaviour change, for example, welcomed 19 new agencies over the past three years. On the other hand, SEO was a subsector with a significant number of agencies already, and yet the 546 agencies offering SEO services that have been founded in the past three years means that one in five are new. 

What does this all mean?

The trends that we see here could be a consequence of two different things. The first may relate to agencies that grew quickly in the 2010s contracting, with experienced staff going on to create their own agencies in digital, SEO, and website development and UX/UI. The second could be an outcome of new market demand for agencies that have capabilities that aren’t yet available to most in-house teams, such as Amazon/Marketplace and, still to some extent, in social.

We can also see that there are a greater number of agencies being founded offering the promise of measurable and efficient marketing than there are offering brand strategy and research. Rightly or wrongly, this is perhaps no surprise given the continuing macroeconomic uncertainty in the UK.

This data raises a number of questions for agency owners, investors and the industry as a whole. Agency owners may be thinking about pivoting or refocusing their existing proposition; investors may be looking at the future M&A pipeline; and industry bodies may want to consider the implications of this for long term talent and skills development within the sector.

What questions would you like answered?

Our data is particularly useful to help agencies identify opportunities and for investors to find specialist agencies, or agencies at specific points in their lifecycle. 

Get in touch if you would like to commission us to do bespoke analysis tailored to your needs and for your exclusive use. You can find out more about our bespoke research and all our products here.  

Would you like to learn more about emerging trends and what is happening across the agency sector? To access all our reports for the next year and our benchmarking Data Shots into 28 agency subsectors (updated quarterly), you can explore our subscription options here.

What does a ten-year-old agency look like? Who has come through the last decade with all its challenges and out the other side? The agency sector has changed a lot over the past ten years, from the impact of a global pandemic to the rise of AI, so let’s explore the agencies that have made it this far: The Class of 2015

Through our mapping of the UK agency sector, we are able to take a look at different groups of agencies in different ways. We can explore all agencies in Scotland, for example. Or Direct marketing agencies with an annual growth rate of over 10%. Or women-led agencies with a turnover of over £3m.

With the publication of our first Agency by Agency Industry Report (preview here), it got us thinking about the developments and changes to the sector over the past ten years. And that led us, in turn, to think about those agencies in our sector who are reaching double figures this year. The Class of 2015. We thought we’d delve into the data for this cohort of agencies, the 1350 agencies in our sector mapping who were born exactly a decade ago. 

Here’s what we found…

Lower overall growth but higher proportion of fast growing agencies

When looked at as a whole, the Class of 2015 agencies are showing an average annual growth of 6%, which is lower than the agency sector average as published in our Industry Report (Spring 2025) of 7.3%. But as always when looking at growth rates in our mapping, the devil is in the detail.

With our ‘Growth Traffic Light’, we divide the Class of 2015 by their growth rate: Shrinking Fast, Shrinking, Stable, Growing, and Growing Fast. When looking at these percentages, we can see that while the cohort as a whole is growing slower than the sector average, there is a higher proportion of the Class of 2015 that are Growing or Growing Fast (22.45%) than across the agency sector as a whole (20.16%).

Higher proportion of smaller agencies but greater overall productivity 

When looking at the size of agencies that have been in business since 2015, we can see that of those turning ten this year, there is a higher proportion of smaller agencies than across the sector as a whole. Of all the agencies that we have mapped, 9.1% have a turnover of over £1m, a number that falls to 6.5% when we look solely at the Class of 2015.

Something similar can be observed when measuring the size of an agency by headcount. Out of all agencies, 8.4% of all agencies have a headcount of 21 or over, but only 6.5% of the Class of 2015.

One of the really interesting findings around the Class of 2015 is when it comes to the topic of productivity, and in particular the Gross-Value-Added of the agencies in the cohort. The UK agency sector as a whole has a GVA contribution to the wider economy of £20.5bn, which results in a GVA per-employee of £77,438. Within the cohort of agencies founded in 2015, however, the GVA per employee greatly outstrips the sector average at £90,064.

“The stand out result in this report is the GVA contribution per employee, showing the significant contribution being made by the Class of 2015. The findings on agency size and subsector are also interesting, as they pose significant questions about the types of agencies that made it through the past ten years and all the challenges of the decade.”

Chris Bantock, The Agency Adventure

Subsectors mirror all agencies but divergence when it comes to employees

As with our Data Shots for the agency sector as a whole, we can divide the Class of 2015 into subsectors based on services offered:

When looking at the number of agencies in any given subsector as a percentage of the whole, the Class of 2015 mirror quite closely the overall UK agency sector. However, when we mapped the number of employees working for Class of 2015 agencies within each subsector, we could see quite a divergence between the ten-year-old agencies and the sector as a whole.

The subsectors that have a notably higher proportion of total employees in the Class of 2015 agencies compared to the agency sector as a whole include:

• Conversion
  0.8% of Class of 2015 employees compared to 0.4% of all employees.
• Creative and advertising
  17.3% of Class of 2015 employees compared to 12.8% of all employees.
• Digital product design
  11.6% of Class of 2015 employees compared to 8.5% of all employees
• PR and communications
  16% of Class of 2015 employees compared to 11.3% of all employees

At the same time, there were a number of subsectors with a notably lower proportion of Class of 2015 employees compared to employees across all agencies:

• Amazon/Marketplace
  0.1% of Class of 2015 employees compared to 0.6% of all employees
• Customer experience
  0.3% of Class of 2015 employees compared to 2% of all employees
• Direct marketing
  0.9% of Class of 2015 employees compared to 2.7% of all employees
• Market research
  1.4% of Class of 2015 employees compared to 6.8% of all employees
• Search and performance 
  6.4% of Class of 2015 employees compared to 11.6% of all employees

When we delve deeper into the founding dates of the agencies we have mapped in each subsector, we can see that the divergence around the Class of 2015 is split between the subsectors where the majority of agencies were founded BEFORE 2015 (66% of Market research agencies, 60% of Direct marketing agencies, and 60% of Customer experience agencies) and those where the majority of agencies were founded AFTER 2015 (75% of Amazon/Marketplace agencies and 55% of Search and performance agencies).

More women-founded agencies but less variation in leadership roles

In our mapping of the agency sector, we define a women-founded agency as one with at least one woman director within the first two years after incorporation. A women-led agency is one that currently has more women directors than men.

Within the Class of 2015, 29.4% of agencies are regarded as women-founded, as compared to 26.9% across the agency sector as a whole. However, by the time we look at these agencies ten years later, we can see that the numbers more closely resemble sector-wide averages. The percentage of women-led agencies within the Class of 2015 is 19.9%, compared to 19.4% across the entire agency sector, and the overall number of women directors in Class of 2015 agencies is 30.7%, almost identical to the 30.8% across the sector as a whole.

What questions would you like answered?

As you can see with this dive into the data of agencies founded in 2015, we can map and explore the agency sector in a number of different ways. To access all our reports for the next year and our benchmarking Data Shots into 28 agency subsectors (updated quarterly), you can explore our subscription options here.

If you have specific questions you’d like answering, our commissioned reports and bespoke research can help, tailored to your needs and for your exclusive use. You can find out more about our bespoke research and all our products here. 

With the launch of Agency by Agency, our first Agency Industry Report and our Data Shots into 28 subsectors, we are helping agencies, advisors, investors, suppliers and policy-makers get the data and insight they need to make informed decisions. We hope you’ll join us on this journey…

After ten months of development, support from Innovate UK and working closely with our friends at The Data City, we’re excited to be launching our first analysis of the UK’s marketing, advertising, creative and media agency sector. It has been an intense and challenging road to get here, and one driven by our ambition to provide clarity and insight into our sector… something that has, until now, been notoriously difficult to map at scale.

Any successful journey begins with a map

With our launch we make public our first findings and make available for our subscribers the full Agency by Agency Industry Report and 28 Data Shots into industry subsectors, from Amazon/Marketplace to Website and UX/UI design. In the coming weeks and months we will be publishing more articles, reports and Data Shots, some of which we will outline in our roadmap below. But how did we get here?

Over the past ten months we have worked closely with The Data City to develop a new way of identifying, categorising and analysing the sector, mapping over 30,000 individual agencies. This is a level of precision and coverage that simply didn’t exist before and it is only the beginning. This mapping of the agency sector is the foundation of what is to come and a platform that will evolve with every insight, every new dataset, every input we get from our community and every challenge we help agencies tackle.

Subscribe for full access

Alongside all the excitement of bringing Agency by Agency to launch, we also know that we are all taking a leap into something new. We have been overwhelmed by the interest and support that we have received over the past few months since Agency by Agency was first announced. Subscriptions are now open; to get full access to our Data Shots and reporting head on over to our subscribe page for different options.

Signing up now not only gives you the first access to our Industry Report and Data Shots, but also the opportunity to shape what comes next. We have worked from the outset on the idea that we are ‘from the sector, for the sector’ and we are determined that our community will directly influence where this journey leads, from the data points we refine to the new features we develop. This is an open invitation to be part of something transformative; to help us shape the future of data-driven decision-making in the agency world.

The long and winding roadmap

Of course, we have our plans, and as early subscribers you are going to want to know what is coming down the road. First up, our Data Shots: on launch we offer benchmarking data and subsector analysis for different types of agencies based on the 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

Within the Data Shots subscribers will be able to explore key stats, financials, growth metrics, subsector analysis and investment funding – you can find out in more detail what our Data Shots include here.

The Data Shots will be refined and updated throughout the year, with a publication schedule of March, June, September and December. Over the course of 2025 we will be adding new data points and talking with subscribers about what trends and insights are most important to them.

Niche is the word

One development that we have been working on intensively alongside the launch of the platform is the mapping of new segmentations, uncovering more agencies in emerging niches and building powerful models that go beyond simple description – models that can reveal the underlying predictors of agency performance. We’ll explore how internal factors like specialisms and team structures intersect with external forces such as consumer confidence and broader economic shifts.

Over time, we’ll introduce even more ways to explore our selector, to forecast using the tools that we now have to hand, and to test ideas through our data. We’ll be putting real power into the hands of those who make the decisions based on information that has not been available until now.

The data is in the detail – our comprehensive reports

With our launch we have published our first Agency by Agency Industry Report, exploring some of the main trends we have observed as we have mapped the sector for the first time and commentary from industry experts to provide additional insight. We approached this first report with the aim of answering some of the big questions: Where is growth and productivity in the UK agency sector? Where is investment flowing? What type of agency services are in demand? Which cities and regions are on the move?

As with everything we do, our first Industry Report is just the beginning. In the coming weeks we will be publishing our Agency by Agency Growth Report, digging deeper into the numbers to explore growth trends across the sector and the services that are most in demand. We will also be publishing a report on agencies and Innovate UK funding, providing an overview of not only where Innovate UK grants have been landing, but how Innovate UK funding can support innovation and creativity across the sector.

The stories of the sector

As we look ahead to 2025 and beyond, some of the stories we are already starting to investigate are the scalability of agencies, agencies as a force for good, the future of agency recruitment, women in the agency sector and what the data tells us about the new generation of agencies founded in the past five years. We are also working together with partners on co-sponsored reports, combining our data and insight with industry expertise and analysis. If this sounds like something you would like to get involved in, please do not hesitate to get in touch.

We hope all of this will have convinced you to sign up and gain full access to the Agency by Agency platform. We are really excited about the stories we will be telling in 2025 about the agency sector and we can’t wait to see where this takes us. We’re looking forward to building the future of agency intelligence with you.

The UK’s marketing, advertising, creative and media agency sector, as you’ve never seen it before…

We are delighted to offer this free preview of the Spring 2025 Agency by Agency Industry Report, including commentary from across the sector as we publish the results of our comprehensive agency sector mapping for the first time.

With the launch of Agency by Agency we publish our first ever Industry Report, in which we show the results of our mapping of the UK’s marketing, advertising, creative and media agency sector, presenting it in comprehensive detail for the first time.

“This new analysis provides industry insight that we’ve never had in such detail before. It not only sheds light on the make-up of the agency sector but also offers valuable data for agencies to benchmark their performance and identify areas for growth.”

Jason Neale / Managing Director, Agency Works

How big is the agency sector anyway?

In the Spring 2025 edition of the Agency by Agency Industry Report we reveal that there are:

• 25,495 agencies, which employ…
• 265,000 people, who create…
• £20.5bn in Gross Value Added (GVA) to the UK economy

Working with our partners at The Data City, we have also mapped the complexity of the sector for the first time, identifying 28 subsectors based on services agencies offer, with more to come.

“This unique data set from Agency by Agency demonstrates just how critical agencies are to the UK creative industries. At last we can shine a detailed light on the industry as a whole and see 25,000 UK agencies generating 35bn of turnover and employing over 250,000 people. The report also highlights some of the challenges around scaling agencies and where opportunities exist to provide investment and support.”

Paul Mead / Chair of We Discover, Beacon lead at the Institute of Practitioners in Advertising

Does agency size matter?

The Spring 2025 Agency by Agency Industry Report shows the importance of agencies to the sector both big and small. Micro and small agencies (defined as those with less than 10 employees or less than £500,000 turnover) make up more than 80% of all agencies across the sector, and the data shows that small agencies and freelancers really matter. For example, agencies with 1-2 employees contribute £1.3bn GVA to the UK economy.

At the same time, the largest of agencies have a big influence. Four in ten employees across the sector work for companies with a headcount of 251 or more, while the 158 agencies we have mapped with a turnover of more than £50m are responsible for 59% of the total turnover of the entire agency sector.

“We always knew instinctively the agency sector was built on small, independent businesses, but seeing the hard data behind this should give founders of these smaller businesses confidence in their legitimacy and place in the industry.”

Claire Hutchings / Founder & MD Chime Agency

Growth is not uniform

The overall number of agencies continues to rise, but the number of new agencies being founded has slowed since a peak in 2019. Across the industry, an overall growth rate of 7.3% (based on headcount and turnover growth) only tells part of the story. The percentage of agencies growing, stable or contracting varies markedly by size of agency or subsector.  For example, subsector growth rates vary from 2.8% (Design and branding) to 20.4% (Amazon/Marketplace).

“The high annual growth rate of over 7% which is impressive in the current climate will be in part driven by the independent sector and therefore reinforces the idea that the industry offers a wealth of choice when it comes to agencies, ensuring diversity and competition is buoyant for the foreseeable future.”

Dominic Greary / Founder & Managing Director 1671

In May 2025, Agency by Agency subscribers will have exclusive access to the full Agency by Agency Growth Report, exploring these trends in even more detail. 

The trends are in the subsector detail

Our mapping has (so far) identified 28 subsectors based on the services that agencies offer. They range from subsectors with thousands of agencies, such as those offering Website & UX/UI design or Digital services, to niche subsectors including Internal comms and employee engagement, Amazon/Marketplace and Brand strategy. 

In the Agency by Agency Industry Report we explore the subsectors showing the highest proportion of growing agencies, including those offering Influencer services, Data and marketing analytics, and Conversion. Subsectors with the highest proportion of shrinking agencies include Translation and localisation, and Brand strategy. Subsectors including agencies offering Design and branding, or Copywriting offer the highest proportion of stable agencies.

“It is interesting to see the sub-sector opportunities outlined in the data. With Influencer and Amazon/Marketplace agencies a scarcity, but growing fast, more established agencies should look to build strong partnerships here to bolster their offerings.”

Claire Hutchings / Founder & MD Chime Agency

Independents, London and women in the agency sector

Elsewhere in the Agency by Agency Industry Report we have used our sector mapping to pull out the data from independent agencies as opposed to those belonging to the ‘Big Seven’ holding companies. Of the 25,495 agencies in the sector, 99% of them are independent and contribute £17.7bn in GVA to the UK economy. Our forthcoming ‘IndieNation: Uncovering the UK independent agency landscape report’ will be published in April 2025 for our subscribers and explore this important part of the agency sector in more detail.

“There has been much reporting that the agency landscape and their business models are in decline – well again we are seeing, particularly for independent agencies, that this community is only increasing.”

Clive Mishon / Co Chair & Founder, Alliance of Independent Agencies

We also look at regional distribution and agency clusters, where our mapping recognises the importance of London to the UK agency sector, but also identifies interesting differences in distribution across the different subsectors. We explore how being inside or outside of London influences key financial metrics such as turnover-per-head and growth rates.

Ahead of our ‘Women in the agency sector’ report, to be published in June, the Agency by Agency Industry Report explores some of the headline data on gender and the agency sector. Our mapping has uncovered that 27% of all agencies are women-founded, while 34% of all agency directors are women.

The subsectors with the highest proportion of women directors are Copywriting, PR and communications and Social media. In contrast, the subsectors with the lowest proportion of women directors are Conversion, Digital product design and Data and marketing analytics.

“The number of women-led and women-founded agencies, along with the proportion of women directors, isn’t surprising – but now, we’ve got the data to back it up. I’m looking forward to Agency by Agency’s gender report to see the real story across different subsectors, agency sizes, and propositions. This is more than just numbers – it’s a chance to highlight the leaders, challenge the industry, and push for real, lasting change.”

Becca Doram / Agency Transformation Director, Jnr. Studio

The journey into agency data begins

Of course, the launch of our Agency by Agency Industry Report is just the beginning. Subscribers who take advantage of our early adopter launch offer already have access to the full report as well as Data Shots for each of the 28 agency subsectors we have mapped so far. 

In the coming months we will be publishing our IndieNation Report, Growth Report and Women in the agency sector Reports, exclusive for our subscribers, as well as launching new Data Shots for subsectors based on, among other things, agency target markets that we are mapping as you read this. We have also started some very exciting work mapping and analysing the languages agencies use on their websites, exploring agency proposition and why language matters.

“A brilliant ‘never been done before’ data set that puts the spotlight firmly onto the key levers of growth for the whole agency industry. The robustness of the data, given the breadth of all types of agencies involved, makes this very powerful. It will be enlightening for agencies to actively track and use the key data points that really matter.“

Emma Hillary / Growth Director, Verity Relationship Intelligence

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, explore our subscription options 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.

“Agency by Agency’s analysis shines a true light on the innovation, opportunity and diversity across the breadth of the UK’s agency sector for the first time. This is exactly why we’ve built sophisticated mapping and data technologies at The Data City. We’re extremely excited about Agency by Agency’s launch and our joint roadmap to deliver real-time insights for the agency sector”

Alex Craven, Co-Founder and CEO, The Data City

Over the past year, as we have been mapping the agency sector in all its complexity, it has become ever more clear to us that comprehensive, accurate data is not only vitally important for decision-making, but that we need to offer tools that reflect the breadth and depth of our industry.

With our subscription service we launch our Data Shots, each providing detailed, actionable insights into 28 subsectors based on the type of services agencies offer. This is only the start, as we have more to come… but the first question we need to answer is: What is a Data Shot and how can it be used?

Inside our Data Shots: Your guide to strategic intelligence

Alongside our reports, which delve into agency sector trends and offer commentary from industry experts, our Data Shots are at the core of our offer to subscribers. They provide unprecedented access to benchmarking data and market insights, and each Data Shot provides a comprehensive view of a specific agency subsector, from Amazon/Marketplace specialists to Website and UX/UI design agencies. 

Each Data Shot is organised into five key chapters, with each delivering specific metrics and insight to help drive your strategic decision-making, whether you are an agency leader, advisor, investor or service-provider. We will publish our Data Shots four times a year, with our current schedule of March, June, September and December.

Key stats: The overview

This section provides essential context for understanding market position. It reveals the total number of agencies working in a particular subsector, how this number has evolved over time and what percentage of the overall agency sector this accounts for. It also offers a breakdown of the distribution of agencies across different size categories based on headcount and turnover. These metrics can aid understanding of market concentration and identify potential opportunities in unserved segments.

Financials: Performance metrics that matter

The financial chapter provides crucial benchmarking data for agencies that work in a specific subsector, including average headcount and turnover figures, also segmented by agency size and compared to the agency sector as a whole. Perhaps most valuably, this chapter also delivers our first metric to help evaluate operational performance against industry-wide and subsector standards. Turnover-per-head will be supplemented over the coming months with other key ratios and other measures of efficiency. This is an important stage on our roadmap.

Growth: Understand market dynamics

Our growth metrics, presented in our ‘Growth Traffic Light’, offer a dynamic view of sector health and evolution. Using growth metrics based on annual headcount and turnover growth by our partners at The Data City, we can categorise agencies by subsector and size into five growth bands. From the percentage of agencies that are Shrinking Fast via Stable to Growing Fast, these metrics help understanding of market momentum and identify where the greatest opportunities lie.

In focus: Regional and economic impact

This chapter provides an overview of the geographic and economic context for any given subsector, mapping agency distribution and clusters across UK regions and quantifying each subsector’s economic impact through total employment, turnover and GVA metrics. These insights are particularly useful for expansion planning and market positioning.

Investment: Follow the money

Track investment patterns through data on both private investment and Innovate UK funding, to build understanding of where strategic capital is flowing and identify potential opportunities for investment or funding strategies.

Making our Data Shots work for you

Whether you are running a boutique creative agency, managing a large integrated service provider, or providing advice and support for agencies across the sector, our Data Shots offer crucial benchmarking insights. Compare performance metrics against sector averages, identify efficiency opportunities and make informed decisions about growth strategies and service expansion.

For investors and mergers & acquisitions specialists, our Data Shots provide the detailed market intelligence that is needed for sophisticated investment decisions. Use them to analyse subsector growth patterns, identify high-performing niches and support due diligence processes with comprehensive market data. You can also contact us to request bespoke research and we can also develop a personalised Data Shot with your own specific data requirements.

Our Data Shots also provide insight for business-to-business service providers, as a first step to understanding potential client segments, agency distribution, growth patterns and investment trends, all of which can help target services more effectively and identify emerging market positions.

For industry bodies, journalists and policymakers, our Data Shots offer access to comprehensive data on sector and subsector composition, economic impact and growth trends. Identify some of the stories from the sector, inform policy decisions and use them to support sector development initiatives.

Looking ahead: The future of our Data Shots

While our 28 Data Shots currently provide unprecedented insight into service-based subsectors, we’re already working hard on expanding our coverage for subscribers. Future releases will include new categorisations based on client industries – from automotive to tourism – as well as thematic Data Shots based on regional clusters and emerging agency sector trends.

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 article, please check out our FAQs page.

If you would like access our Data Shots, explore our subscription options 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.

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, explore our subscription options 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.