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17 June 2014
The 100 largest UK digital agencies have increased their annual fee income by 23% to £1.48bn, according to data published today by Econsultancy.
The Top 100 Digital Agencies Report (http://econsultancy.com/reports/top-100-digital-agencies), published by Econsultancy and sponsored by Sitecore, ranks agencies according to fee income from their UK digital activities.
For the equivalent 2013 report, the same 100 agencies had reported combined fee income of £1.2bn for the previous accounting period.
The research also found that creative activities drive the largest share of agency fee income, accounting for an average of 21% of fees for agencies working in this area. This was followed by technical development (19%).
Agencies are profiting from the skills, knowledge and experience they have built up over the past years as brands look to invest more heavily in the face of continuous customer change and digital disruption.
For this reason, optimism within the industry is high: 77% of agencies surveyed said they were ‘very optimistic’ for their business over the next 12 months.
Speaking about the report, Econsultancy CEO Ashley Friedlein said: “When this report was first launched in 2002, the largest agency had a fee income of £17m. Today, two agencies have fee incomes of more than £100m. Furthermore, our Marketing Budgets Report shows that companies now spend an average of 38% of their budgets on digital.”
He added: “For brands now on a path of digital transformation, the answer no longer lies in simply increasing digital budgets. The frontier for brands is how to craft customer experiences that appear seamless, while taking full advantage of new technologies and emerging customer behaviours. It is in this area where agencies can really prove their worth, by blending their technical expertise with creativity.”
Shawn Cabral, marketing director, Sitecore UK, said: “These results show that UK digital agencies are enjoying growth in a vibrant market, as all organisations want to bring digital more into their overall business strategy and integrate across all areas of their business. Digital agencies can bring a unique combination of strategic insight, practical know-how and creativity which is vital to help brands deliver experiences that add value for the brand and the customer.”
Other findings include:
- The five largest digital agencies in the UK are SapientNitro, IBM Interactive Experience, DigitasLBi, AKQA, and Engine.
- MediaCom was found to be the largest digital media agency, which are ranked separately according to total billings.
- The most influential agency, as voted by other agencies, was AKQA. The most influential person was named as Kelvin Newman, Director at SiteVisibility.
- Six agencies were also listed as ‘ones to watch’. These are Mediaworks, True Digital, Building Blocks, 4Ps Marketing, BLOOM Worldwide and Proof Digital.
- The most common market sector targeted by digital agencies was financial services, with 77% targeting this vertical. Other areas included retail (77%), travel and leisure (75%) and consumer goods (75%).
The Top 100 Digital Agencies Report is available for download both as a PDF report and interactive Excel file on the Econsultancy site: http://econsultancy.com/reports/top-100-digital-agencies
Join the discussion on Twitter using the hashtag #Econ100
Notes to editors
Econsultancy is available for comment or to discuss the findings in more detail.
For more information about this report, contact:
Andrew Warren-Payne, Senior Research Analyst,
+44 (0) 207 269 1450
Econsultancy’s mission is to help its customers achieve excellence in digital business, marketing and ecommerce through research, training and events.
Founded in 1999, Econsultancy has offices in New York, London and Singapore.
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Sitecore is the global leader in customer experience management software. The company delivers highly relevant content and personalised digital experiences that delight audiences, build loyalty and drive revenue.
With Sitecore’s experience platform, marketers can own the experience of every customer that engages with their brand, across every channel. More than 3,500 of the world’s leading brands – including American Express, Carnival Cruise Lines, easyJet and Heineken – trust Sitecore to help them deliver the meaningful interactions that win customers for life.
For more information about Sitecore, visit www.sitecore.net
Ranking details: In rank order, The Top 100 Digital Agenices are:
SapientNitro, IBM Interactive Experience, DigitasLBi, AKQA, Engine, BAE Systems Applied Intelligence, Salmon, Deloitte Digital UK, iProspect, Endava, M&C Saatchi UK Group, Javelin Group, Wunderman UK, RAPP, CACI, Lowe Profero, Latitude Digital Marketing, Razorfish, iris Worldwide, R/GA London, Tullo Marshall Warren, Amaze, MRM Meteorite, Jaywing, Isobar, Twofour Group, Grass Roots Group, Dare Digital, VCCP, Proximity London, POSSIBLE, Holler, HeathWallace, Ebay Enterprise, Zone, Stickyeyes, Critical Mass, Jellyfish Group, We Are Social, iCrossing, Realise, Greenlight, TBG, TH_NK, Cognifide, VML, Investis, Reading Room, McCann Manchester, Haymarket Network, The BIO Agency, Fullsix UK, MSL Group, Precedent, Valtech, Group FMG, Axonn Media, 360i, Volume, Technophobia, Spindrift, Equator, Ayima, AIA Worldwide, 1000heads, CDS Digital, Tangent Snowball, WMG, Foolproof, Rippleffect, Karmarama, Redweb, Summit, twentysix, Click Consult, Brass, Hugo & Cat, ais London, Rufus Leonard, Epiphany, Metia, Abacus e-Media, e3, The Real Adventure, MBA, Code Computerlove, The Big Group, Branded3, Think Jam, dnx, Fresh Egg, Affinity New Media, Pancentric Digital, Huge, Stink, neoworks, Add People, Freestyle Interactive, Linney Design and Head.
The top media agencies are: MediaCom, Essence Digital, Mindshare, Neo@Ogilvy, equimedia, agenda21, Harvest Digital, Threepipe, Net Media Planet and Navigate Digital.
Published on: 12:09PM on 17th June 2014