RSW/US, a leading outsourced lead generation and business development firm for marketing services, has published its highly anticipated 2024 Agency New Business Report. This year’s report, based on a survey of agency executives across the U.S., reveals both new opportunities and ongoing hurdles in the agency business development landscape.
Key Insights:
1) Improved Business Development Environment
For the first time since 2021, the percentage of agencies finding it harder to secure new business has decreased. In 2024, 48% of agencies reported difficulties in obtaining new business, down 10 points from previous years. Additionally, 38% of respondents said the number of new business opportunities increased, a significant jump from 29% in 2023.
2) Evolving Sales Cycles
Agencies reported some improvement in sales timeframes, with 83% closing new business within 1-6 months, an 8-point increase from 2023. This improvement suggests stabilization in business development efforts, allowing agencies to manage pipelines more efficiently.
3) Technology Adoption on the Rise
The integration of AI tools like ChatGPT into business development efforts has grown significantly, with 54% of agencies now using AI for research, content creation, and competitive analysis. This is up from 38% in 2023, highlighting the industry’s gradual shift toward tech-driven strategies.
4) Challenges Remain
Despite these positive trends, challenges persist. The leading difficulties agencies face include breaking through to prospects and a limited number of opportunities. Additionally, high turnover rates for new business directors continue to disrupt long-term growth strategies, with 76% of agencies reporting their directors last less than two years.
5) Importance of Consistency
RSW/US stresses the importance of consistent business development efforts. Although the landscape appears to be improving, nearly half of the surveyed agencies still report difficulties winning new clients, emphasizing the need to refine approaches, deepen client relationships, and adopt more proactive development tools.
Conclusion:
As agencies prepare for 2025, the 2024 Agency New Business Report provides a cautiously optimistic outlook. While agencies are adapting to market changes, there is a continued need for strategic evolution to ensure sustainable growth.
About RSW/US
RSW/US is the nation’s leading outsourced business development group that helps marketing agencies find meaningful new business opportunities and get them closer to close. To learn more visit www.rswus.com or call Lee McKnight at 513-559-3111.
