Australian Digital Marketing Agencies See Strong Growth and Competition Ahead
How do digital marketing agencies see the rest of 2016 shaping up? Kentico Software has announced a new survey conducted by independent global research agency Millward Brown that looks at the opportunities and aspirations of today’s digital marketing agency decision makers.
The survey interviewed 300 senior managers and directors of digital agencies across Australia, the UK, Europe and North America and explores what many of today’s digital marketing agencies are doing to maintain competitiveness in a market that is experiencing both growth and rapid change.
Local Agencies Leading the Way
A key finding from the global survey was that Australia, together with New Zealand, appears to be the most progressive digital marketing region in the world. Local agencies are planning to outsource work more and will change their CMS/digital marketing platform more than agencies in other regions. Other agencies, especially in the UK and Czech Republic, do not plan such significant changes this year.
The survey found that of the agencies in Australia and New Zealand surveyed:
- 7 per cent were planning on investing in new software
- 14 per cent were planning on investing in new hardware
- 20 per cent were planning in outsourcing more work
- 21 per cent were planning on changing their CMS/digital marketing platforms
- 17 per cent were planning on acquiring another company (and 18% were planning on merging with a new company)
“That Australian digital marketing agencies lead other major markets in investment and expansion plans in 2016 illustrates both the health of the local sector and the increased importance organisations are placing on reaching their target audiences through digital channels,” said Wayne Jasek, director of APAC operations for Kentico Software.
According to the global study, the vast majority of digital agencies are expecting high growth. 90 per cent of higher-performing agencies plan to hire new people. 71 per cent of agencies overall expect to invest more money in software.
Half of the agencies surveyed plan to outsource more of their projects while slightly less than half hope to grow through acquisition. Those that plan to hire more people and invest more money in software and hardware have especially high hopes.
But Challenges Remain…
According to the survey, the greatest challenges facing digital agencies around the world are:
- Competition (80 per cent)
- Clients’ lack of understanding of digital marketing (78 per cent)
- Clients expecting a high volume of work at low cost (78 per cent)
- Clients acquiring but failing to use digital marketing tools (73 per cent)
- Not enough clients (58 per cent)
Australian agencies, in particular, face challenges around not having enough quality staff (14 per cent), being unable to complete the majority of their projects on time (11 per cent), and being unable to deliver profitable projects (12 per cent).
People Remain a Key Driver
When asked about the greatest contributors to success, the digital agencies surveyed report that it came down to people—specifically, clients being able to clearly communicate what they need (#1), employees understanding the task at hand (#2), and clients being willing and able to cooperate (#3).
“This new survey suggests that digital agencies maintain a positive outlook for 2016 and plan to make important investments in people and technology,” said Kentico founder and CEO Petr Palas. “They continue to focus on solving the most pressing digital marketing challenges.”
Show Me the Money
So who are digital agencies most interested in hiring? Graphic designers, says the survey. They are being paid more than developers and marketers, particularly at higher-performing agencies.
Interestingly, when it comes to client fees, Australia leads the way with the top average project prices by country:
Australia/New Zealand: $190,000 USD
Benelux: $140,000 USD
United Kingdom: $125,000 USD
United States: $105,000 USD
The Digital Agencies 2016 Report includes top areas of investment, technology, and more. To download the report, please click here.
Latest News
Kantar: AVOD Subscribers Double In 12 Months
Study finds Aussies happy to watch ads on their streaming services. Or, are they just putting the kettle on more often?
Val Morgan Digital Exceeds All Campaign Uplift Benchmarks Via A 12-Month Brand Metrics Study
Val Morgan announces it has exceeded all its campaign benchmarks. Still can't get under an hour for the City To Surf.
Australian Retirement Trust launches monster of a campaign, by M&C Saatchi and Bohemia
Get offered a seat on the bus today? Knees creak like an old pirate's galleon? This retirement ad may be of interest.
Print Audits To Discontinue As Audited Media Association Of Australia Pivots To Support Influencer Marketing
Is it just B&T or are audits in the media industry suddenly becoming murkier than Roxy's husband's tax returns?
News Corp Australia Launches 2024 National Education Advocacy Initiative With Expanded Program
News Corp set to shine a light on the nation's schools in new series, giving illegal bikie gangs a well-earned rest.
Decoding The Consumer Maze: Urban List Report Reveals How Modern Shoppers Spiral From Discovery To Purchase
Latest report unravels a shopper's journey from the joy of discovery through to a nasty letter from a debt collector.
Cosmo Returns To Australia!
Ever get the feeling we've weirdly warped back to 1988 at the moment? Confirm it with the relaunch of Cosmo in print.
People & Culture Consultancy Human Kind Collective Launches To Plug HR Gap For Media Agencies
Does the very mention of HR have you struggling to remember last year's Christmas party? Get the sweats with this news.
‘We Want To Be A Growth Partner, Not Just A Media Buyer Or Someone That Makes Ads’ – Bohemia Boss On Agency’s Ambition
B&T's chatting with Bohemia boss Paul ‘Hutch’ Hutchison. Although we do think 'the dagger' a far superior nickname.
Initiative’s Geoff Clarke: ‘Youth Hits Targets With Enthusiasm, Experience Hits The Targets You Can’t See’
Initiative’s CCO Geoff Clarke on the value of experience in agencies. Not to mention quoting lines from Pulp Fiction.
The Iconic Teams Up With 5 Aussie Athletes For Latest Campaign
Fashion label brings in the athletes for new campaign, many of whom appear to have prepped with re-runs of Zoolander.
Seven West Media Secures New Director Of News & Current Affairs
After a tumultuous few weeks, Seven unveils director of news & current affairs. And B&T never uses tumultuous lightly.
Seven Network Expands NSW Sales Team With Two New Group Business Directors
Seven ramps up its NSW sales team. Both of whom are well versed in pronouncing Manu Feildel's croque-monsieur.
New PR Subscription Changing The Game For Aussie Start Ups
Need better PR? You can now buy it via a monthly subscription. Price does not include a fascinator or Moet piccolos.
Paul Kent At Centre Of Fresh Scandal After Alleged Street Brawl
Do you long for the fights, gouges & testicle grabs of footy's glory years? So too, it appears, does Paul Kent.
DiDi Taps Disney’s Tim Farmer For Head Of Brand Marketing Role
Disney's Tim Farmer shifts over to rideshare company DiDi. Taking with him his Donald Duck coffee mug & mouse ears.
As Sure As Night Becomes Day, The End Of Third-Party Cookies Has Been Delayed
The question remains: what will we see first? The end of cookies, alien invasion or Jesus's second coming?
Fast 10: Scoundrel’s Tim Bullock Explains What Shane Warne & Salt-N-Pepa Have In Common
It's a Fast 10 with Scoundrel's Tim Bullock. Make it sound even faster by sucking on helium while reading it.
Outbrain Snatches Chris Oxley From Foxtel Media
Foxtel's Chris Oxley shifts over to Outbrain, but not before having his press photo taken in the wilds of the Daintree.
oOh!media & POLY Partner With Greening Australia For OOH Awareness Campaign
Like to quell the road rage with super cute pics of fluffy marsupials? This outdoor's just the ticket.
Are Media Cares For The Carers In Its Latest Social Change Campaign
Are Media calls on the government to add super payments to carers' payments. Remains silent on AUKUS, however.
In A Fragmented World, Engagement Is King
Today, B&T TV's talking fragmentation & engagement. But not in a down-on-one-knee sense of the word.
Kyle Sandilands On Advertising: “We Want Return Business. It’s No Good Just Taking Someone’s Money”
Kyle & Jackie O finally arrive on Melbourne radio. As yet, no sign of the monotonous and bitter AFL-NRL debate.
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.