The Next Agency Model – SoDA Report 2021

In this report, you can read thoughts on the future of the marketing agency model of the experts from SoDA, the Society of Digital Agencies, a global member-based network for digital agency leaders, creative visionaries and technology innovators. Readers will also have access to research trends that represent a state of the industry outlook from more than 100 agency and client-side executives.

The report was developed in partnership with Deltek, the leading supplier of IT solutions for PSO and project-based business. Authors candidly share how they’ve responded to the pandemic, their level of preparedness for disruption, and how to create a stronger business model for the future.

SoDA conducted a survey with agency leaders in Q4 2020 (October 9 – December 22) to better understand how they navigated the disruption in 2020, their financial performance for the year, operational pain points and priorities, and the initial outlook for 2021.

Look at some survey’s outcomes:

• Despite a volatile year, 58% of agency leaders said that the second half of the year was better than forecast. 64% are optimistic that they will see improved performance in 2021.
• Despite downward pressure on revenue, 67% of agencies pointed to profitability in 2020 and, surprisingly, 43% projected improved profit margins relative to 2019. That said, 12% of agencies pointed to a loss in 2020 and 32% said that their profit margins were lower.
• While 75% of respondents note at least one challenge for their finance team, there was no single pain point that was common across most respondents. Timesheets and data reconciliation topped the list.

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