Figuring out what's going on in the world of digital services can be tough to master. But we're going for it. In February we asked for info on how 2024 is trending and what is selling. And two weeks ago we asked again! With over 100 shops reporting in both times, we can now start to see not only how things are going, but how they're trending too. Enlightenment awaits those who read on.
2024 Digital Services Sales Trends
Let's look at how things are going in the second quarter and how they're trending for the year so far.
How are your sales trending?
Up, Up, Up: 22.5% (Down 7.5%)
Holding Steady: 41.2% (Slightly Up 0.6%)
Losing Ground: 29.70% (Up 6.5%)
Over 63% of all shops reported that they are currently stable or growing, down from 6.3% in February. While this doesn't mean the sky is falling, we should proceed cautiously. So what is selling?
What service offerings are clients buying?
Web Development and Design: 45% (Down 6.51%)
SEO and Digital Marketing: 20% (Down 9.7%)
Strategy and Consulting: 15% (Slightly Up 1.06%)
Support and Maintenance: 15% (Up 7.73)
Creative Services and Content Creation: 5% (Down 13.79%)
Creative Services and Content Creation took a big hit, with SEO & Digital Marketing and Web Development & Design also seeing losses. Support & Maintenance was the only category with a noticeable increase in sales.
And how long is the sales cycle taking?
Longer: 56.2%
The Same: 33.8%
Shorter: 10%
This is a new question, so we don't have February data to compare it to. Regardless, if over 50% of agencies are reporting it's taking longer, that feels pretty significant.
With sales trending down and the time to close increasing, it might be time to prepare for stormy weather as we head into the next US election cycle. But we've been here before, and we know how to weather a storm. Plus, it could blow over! But let's get ready for it in the same way.
As we prepare for whatever comes next, remember that you aren't in this alone. If you'd like more specific answers or have suggestions on how we can improve these surveys, please let me know! We're here for you.