Cincinnati, September 15, 2022 /PRNewswire/ — RSW/US, the nation’s leading marketing agency outsourcing business development firm, just completed its annual RSW/US 2022 Agency New Business Report.
In the first two years, this RSW survey and final report showed that many small and medium-sized institutions were growing or regaining growth lost in the previous year. This year, agencies face a more challenging environment. For example, agencies reported an 11% drop in organic growth in 2022 as an efficient way to generate new business for advertising agencies. In addition, only 32% of institutions report an increase in the number of new business opportunities in 2022, compared to 51% in 2021.
Another indicator that the new business environment is more challenging: In 2021, only 28% of institutions said it would be harder or harder to acquire new business (compared to the previous year). By 2022, this proportion rises to 43%.
A clear sign, and a source of difficulty in driving new business this year: agents are not investing in the development of “new” new business.
This plays a role in the low percentage (all below 15%) attributed to phone calls, social media, inbound and traditional mail.
A few other key statistics explain this increased difficulty and illustrate the lack of a strategic plan around “new” new businesses:
- 55% of agencies say it’s harder to reach out to leads compared to last year.
- Agencies reporting their last new business hire were highly successful, falling from 60% in 2021 to 41% in 2022.
- In 2021, agency hiring for new business director positions fell to the lowest level since 2010, with only 32% of agencies hiring new business directors over the past three years. By 2022, this figure will reach 32% again.
The growth of many companies in 2021 and 2022 is cause for celebration, but the changes in our industry are constant and existing growth appears to be slowing. Moving into 2023, it is critical that agencies establish a manageable framework for “new” new business.
RSW/US is America’s leading outsourced business development group, helping marketing agencies find meaningful new business opportunities and bring them closer to completion.To learn more, visit www.rswus.com or call Lee McKnight at 513-559-3111.
touch: Lee McKnight
e-mail: [email protected]