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@daniel_in.the.lions.den:

🇨🇦 Daniel 🇨🇦
🇨🇦 Daniel 🇨🇦
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Region: CA
Tuesday 13 August 2024 00:09:27 GMT
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The difference between an ad agency that does 1 million, 10 million, 100 million, and 1 billion-plus in annual revenue. 1 million Typically works with small mom-and-pop clients. High-churning clients… typically leave as quickly as they come in. A limited amount of services are provided. 10 million Typically has been around for 5-plus years.  Grows through referrals, networking, and marketing their agency. Typically offers at least 4 services and tries to get clients to pay for multiple services. Clients typically last 2 or 3 years. Focus on mid-sized businesses and less local shops. Sometimes focuses on a specific vertical such as legal, medical, B2B, or even e-commerce. 100 million Built out an executive team that comes from large holding companies. Generates its business from RFPs, client referrals, and employee referrals. Clients tend to be larger corporations. The agency is typically full-service and tries to sell at least 4 services per client. Churn is usually around 4 or 5 years for a client. An agency of this size typically started doing what most 1 million dollar agencies do, then moved upstream to mid-size clients and over time focused on enterprise. Growth also comes from acquisitions. 1 billion Global ad agency. Generates their income from RFPs. Focus on large enterprise accounts that pay $10 million plus a year in agency fees. The majority of their clients are global companies that need help in multiple regions for multiple services but only want to deal with 1 ad agency. Takes a long time to win these clients… churn rate varies but it’s around 15% a year. Ad agencies of this size usually grow through acquisition.
The difference between an ad agency that does 1 million, 10 million, 100 million, and 1 billion-plus in annual revenue. 1 million Typically works with small mom-and-pop clients. High-churning clients… typically leave as quickly as they come in. A limited amount of services are provided. 10 million Typically has been around for 5-plus years.  Grows through referrals, networking, and marketing their agency. Typically offers at least 4 services and tries to get clients to pay for multiple services. Clients typically last 2 or 3 years. Focus on mid-sized businesses and less local shops. Sometimes focuses on a specific vertical such as legal, medical, B2B, or even e-commerce. 100 million Built out an executive team that comes from large holding companies. Generates its business from RFPs, client referrals, and employee referrals. Clients tend to be larger corporations. The agency is typically full-service and tries to sell at least 4 services per client. Churn is usually around 4 or 5 years for a client. An agency of this size typically started doing what most 1 million dollar agencies do, then moved upstream to mid-size clients and over time focused on enterprise. Growth also comes from acquisitions. 1 billion Global ad agency. Generates their income from RFPs. Focus on large enterprise accounts that pay $10 million plus a year in agency fees. The majority of their clients are global companies that need help in multiple regions for multiple services but only want to deal with 1 ad agency. Takes a long time to win these clients… churn rate varies but it’s around 15% a year. Ad agencies of this size usually grow through acquisition.

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