Preview: IndieNation Report

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.