Most marketers feel their current media agency model either needs to improve or is unfit for the future, according to a new study by the World Federation of Advertisers (WFA) and MediaSense. The report, entitled “The Future of Media Agency Models,” found that just 11% of the 70 multinational brands surveyed believe their current model fits their future needs, with 45% saying they are looking for more flexibility and 37% looking for simplification through fewer and better integrated partners.
State of the Digital Marketing Agency in 2023: Our 10 Biggest Takeaways
Our data shows that the hybrid billing model has grown in popularity over the last few years. In our 2020 report, flat fee and hybrid billing models were about equally common, but this year, almost half of all agencies we surveyed are using a hybrid billing model. “There are lots of options for how agencies can price their services. We’ve seen hybrid billing models grow in popularity because they provide the flexibility for agencies to price their services in a way that benefits both their clients and their own bottom line.” said Erin Rose, Sr. Director of Partner Development for LocaliQ.
Google Search: A Gross Margin Framework For Generative AI Modeling
Global search revenue estimates from New Street Research forecast that the market will reach $316 billion by 2030, suggesting a compounded annual growth rate (CAGR) of 6.5% from 2023 until the end of the decade. … The research firm published in a note on Thursday, estimating that search growth will be driven by continued momentum in mobile, growing at a CAGR of 8.6% from 2023-2030, and representing about 92% of total search revenue by the end of the decade. Desktop will see a decline of 6.1%. Global search revenue today is nearly 80% mobile.
Marketers More Optimistic Even As Budgets Fall
Marketers are feeling much more optimistic this quarter, according to the CMO Survey from Deloitte. Nearly half (49%) reported feeling “more optimistic” about the U.S. economy, up from 30.1% in the spring survey. The Marketer Optimism Score, which measures marketer sentiment on a scale of 0 to 100, went from 58.3 in the spring to 66.5 currently. By sector, B2C Services companies report the highest rate of optimism, with 72% reporting feeling more optimistic. It was followed by B2B product marketers at 67.1%, B2B services at 66% and B2C products at 64.5%.