Infographics – Digital Agencies Survey 2019

Infographics – Digital Agencies Survey 2019

We are proud to present to you for the first time the most interesting data regarding Israeli digital agencies

The digital agencies survey addresses all the questions of interest to industry employees and provides us with fascinating insights into this popular field.

Information about the Agency Itself

♦ Most agencies (73%) are small agencies with fewer than 10 employees. In fact, only 15% of agencies employ more than 20 people.

♦ 36% of digital agencies define themselves as advertising agencies, 14% define themselves as creative agencies, 21% define themselves as performance agencies, and only 4% define themselves as SEO agencies.
♦ 95% of agencies stated that they engage in paid advertising, but only 38% do email marketing.

♦ 96% run campaigns on Facebook/Instagram, 84% run campaigns on Google, 55% run campaigns on Outbrain / Taboola, 54% run campaigns on YouTube, and 37% run campaigns on LinkedIn.

♦ Only a third of agencies handle e-commerce, 12% of agencies handle B2B, B2C, and e-commerce, and 39% run only B2B campaigns.

♦ Almost half of the digital agencies charge a setup fee ranging between 1,000–2,500 NIS per platform.

♦ Not many agencies provide diverse services to the client “in-house” such as ad design, article writing, copywriting, etc. – about 75% of agencies use external services.

♦ Half of the agencies work on a fixed-fee model rather than media commissions (likely due to low budgets).

Clients
♦ Most clients come from the fields of health/lifestyle, real estate, education, fashion, and services.

♦ Most clients coming to the agencies have prior digital advertising experience.

♦ 65% previously advertised on familiar platforms: Facebook, Google, Taboola, Outbrain, LinkedIn, and more. In contrast, for 35% of clients coming to digital agencies, this is their first experience with digital advertising.

♦ Digital clients are retained over the long term. Only 24% of agency clients stay for less than a year with the agency.

Budgets
♦ Most agency budgets go to Facebook and Google. The surprising finding is that a higher percentage of the budget goes to Facebook than to Google. Even though we might expect the opposite: 49% of agencies invest over 50% of their monthly budget in Facebook, compared to 27% of agencies that put over 50% of their budget into Google. Most agencies invest very little budget in platforms other than Google or Facebook.

♦ 70% of agencies see their budgets grow every year.

♦ 85% of agencies are optimistic and believe they will increase their budget in the following year.

♦ 74% of agencies manage a budget of less than five million NIS per year.

Reports

♦ 22% of digital agencies use the Google Data Studio tool to provide reports to their clients, but one-third of agencies still send reports as Excel files.

♦ Most agencies learn by watching videos on YouTube and local and international websites, and only 26% take paid training sessions.

Challenges

♦ The challenges agencies face are diverse; the most prominent among them are: recruitment and employee training, and employee time management within the agency.

♦ The hardest challenge is client acquisition and retention: 50% of new clients come from referrals from satisfied agency clients, while only 17% of new clients come through the agency’s own paid client acquisition campaigns.

Summary

In summary, there are many challenges for agencies in the digital field, and it seems the industry is leaning toward small agencies and mega-agencies, with almost no medium-sized agencies. Performance is taking over the core work of digital agencies, and creative is occupying a larger space in agency work. Client acquisition and employee retention are major challenges, and most agencies fail to grow to a medium or large size.

Feel free to share on your website or Facebook.