Ad Agencies Navigate Challenging New Business Landscape in 2023: RSW Survey Reveals Struggles and Areas of Improvement

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Oct 04, 2023, 11:00 ET

CINCINNATI, Oct. 4, 2023 /PRNewswire/ -- RSW/US, the nation's leading outsourced business development firm for marketing agencies, just released its annual RSW/US 2023 Agency New Business Report.

Ad agencies find themselves grappling with unprecedented challenges in acquiring new business, as revealed by RSW/US. The study sheds light on key statistics emphasizing the uphill battle agencies have faced so far in 2023.

This year, 58% of agencies reported that obtaining new business has become significantly harder, marking increases from 28% in 2021 and 43% in 2022. In addition, 2023 has also presented challenges in the form of slowing referrals, decreased budgets, and longer sales cycles.

The survey also indicates a decline in satisfaction with internal new business programs, with only 44% of ad agencies expressing satisfaction, compared to 49% in 2022 and 52% in 2021. The challenges are particularly pronounced for small and mid-sized agencies, where hiring individuals to drive new business is a formidable task.

A few other key stats that exemplify the struggles around "new" new business:

Hiring for the new business director position is at its second-lowest level since 2010, with only 36% of agencies hiring in the past three years. The average tenure of a new business director hire in 2023 is notably short, with 29% lasting less than a year and 23% lasting 1-2 years.
The average time from a first meeting to close in 2023 is reported to be 1-6 months for 75% of agencies. While this is an improvement from 2022, deeper analysis reveals challenges with shorter timeframes decreasing and longer timeframes increasing.
69% of agencies still find referrals to be the most effective method for acquiring new business; however, there are reported decreases in reliability compared to previous years.

In light of these statistics, agencies are urged to reassess their business development strategies moving into Q4 and 2024, where trends and spending look to improve. The challenges are significant, but not insurmountable, especially as some anecdotal evidence shows the end of Q3 loosening up to an extent.

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.

Contact: Lee McKnight Jr.
Phone: 513-559-3111
Email: lee@rswus.com

SOURCE RSW/US