Larger Agencies Seeing Revenue Growth from AI Adoption
Small and larger agencies have embraced AI; however larger firms are seeing a wider array of benefits, including revenue gains.
We recently shared our full agency survey results in aggregated form. This new slide presentation drills down and compares the responses of firms with fewer than 10 employees against those with 200+.
What we discovered is that while both groups have embraced AI, there are significant differences in the perceived benefits in some cases. Here's a high-level overview of some of the findings:
- Clients: Smaller agencies largely serve independent SMBs while larger agencies have a more diversified client mix.
- Challenges: New client acquisition and managing operational costs are top challenges for both groups. After that the main challenges diverge.
- Growth Outlook: Most smaller agencies expect measured growth, while larger agencies are significantly more bullish.
- Client Acquisition: Smaller agencies rely heavily on WoM referrals, while larger agencies get clients from a broader mix of channels.
- Highest Retention Services: Services that deliver the best retention for smaller and larger agencies are quite different.
- AI Adoption: Smaller agencies have higher adoption than larger agencies. But larger agencies report more revenue gains from AI.
- AI Benefits: Both groups cite efficiency and productivity as top benefits. Cost savings is another common to both.
- AI Concerns: Both groups have concerns, despite their enthusiasm, though the specific questions/issues are different.
