COVID 19 Impact and The Silver Lining [Digital Agency Stats]

Covid-19 pandemic has hit the businesses hard, and from almost all the angles, a thing none of us can deny. Needless to say that the Digital Agencies have been hit hard too. After all, the entire reason behind the existence of a digital agency is to support the clients better their business. When a business is hit, the effect will trickle down to the support functions as well.

With a heavy heart, thus, we went about exploring how the digital agencies across the globe have been affected and how they are trying to tackle the situation. The process of this pursuit was simple- we did a lot of secondary research, interact with multiple agencies in and around India, too, and so we finally figured how things are shaping.

Before we delve into the deeper insights, here is some “Not Bad News” for you all:

“The Findings weren’t totally negative. Rather, statistically speaking, we found a lot of positives in the scenario!”

Having said that, let us explore the scenario further!

The Key Statistics

So here are the major findings from the research:

  • 57% of the global agencies felt that this scenario is going to last for at least nine months
  • 66% of the agencies contacted saw a steep decline in their revenues
  • 16% of the agencies, however, saw an increase in their revenues during the same period
  • 58% of the agencies felt that they are okay with renegotiating the pricing terms with their clients and went ahead with the proposal to ensure retention
  • The overalls service fee saw a decline of 28% for the clients
  • 80% of the agencies agreed that they are open to outsourcing their services to boutique firms
  • About 47% of the agencies surveyed saw a fall in marketing leads whilst 27% of the list saw an increase in offline interactions.
  • The firms with less than 25 employees were the ones that got impacted the most.
  • However, the agencies with less than 10 employees gained several new clients and projects
  • Among the sections which saw an increased emergence of the digital agencies’ were technology, e-commerce, and healthcare. These three sectors combined contributed to about a 14% increase in the revenues of the agencies surveyed.

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Dealing with the Situation

Once we were through with all the research, we found that the stats laid a not so bad picture after all. So, we took the next step and had a word to understand what it was that worked out for the agencies. The following points lay out the key insights:

  • E-mail marketing and surprisingly, LinkedIn Inmail campaigns came out as live savers for promoting businesses at hardly any costs.
  • Blog content in the form of newsletters also saw an increase to build on cost-effective promotion measures
  • Instead of lead generation campaigns employing direct messaging, the focus shifted to lead gen forms for their cost-effectiveness
  • Outsourcing was a big plus, and a lot of boutique agencies or freelancers had projects outsourced to them. This helped the agencies to cut down their service quotes
  • A lot of agencies also engaged in profit sharing models with their existing clients as well as the news ones while significantly cutting down on the retainers

As you must have observed too, these changes were really small to make, but the kind of cost-cutting and pressure-easing tactics that were employed made sure that even though less, the cash flow continued!

We would say that the firms that employed these tactics survived well enough to emerge stronger when things get better!

The Takeaways

We may or may not want to accept it, but what we are living in now is the new normal. Things will not be better any sooner, and hence adapting is the key. We laid out the facts for you; we also laid out the best things that worked. But, what to do and how to go about it is the choice we leave with you!

The Parting Note:

At Blackzoid, having worked with multiple SMBs and even the biggest of the brands over time, we have seen how COVID-19 has impacted the overall budget. At a time when survival becomes tough given how the entire business ecosystem is hit, as a responsible digital agency, we would like to step-up for our clients.

Let’s Get Talking Digital

With a team of experienced digital strategists and executioners and having worked with over fifty clients over the years, we would want to mention here that if your firm is looking at fast-tracking its growth and getting the maximum ROIs at really tight budgets, please feel free to reach out.

The services that we provide span across digital marketing, web development, rebranding, marketing consultancy and much more. We are a Full Service Digital Agency, based in Delhi, India.

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