The agency landscape is shifting, and staying ahead means understanding the trends shaping the industry. The State of Digital Services 2025 breaks down what's working, what's not, and the steps agency leaders are taking to grow in a challenging market. Special thanks to our friends at Promethean Research and Parallax for making this research possible. As well as the 151 shops who participated, y'all rock! Now keep reading to find the key insights and how to get your copy.
2025 State of Digital Services Insights
It's no doubt that our industry is evolving, and the latest research reveals what is driving agency growth and where firms are struggling. The newest research highlights key trends, from shifting workforce dynamics to AI adoption and pricing strategies. While overall growth held steady, the data shows that smaller agencies are rebounding while larger ones face new challenges. Agencies that are adapting through specialization, pricing adjustments, and strategic use of AI are seeing the strongest results. Here are the key takeaways shaping the industry this year:
Growth is Stabilizing but Uneven
Industry-wide growth held at 4.6 percent, but small agencies rebounded while medium and large agencies saw their first recorded contractions.
AI is Changing the Game
Agencies making the most progress in AI adoption are seeing the biggest efficiency gains, particularly in copywriting and coding.
Pricing and Specialization Are Critical
Raising rates led to an average 8 percent revenue increase, while firms that lowered rates saw a 6 percent decline. Agencies that specialize continue to outperform generalists.
Workforce and M&A Shifts
Employee turnover remains high at 23 percent. Many agencies are replacing full-time employees with contractors. Nearly half of agency leaders are considering mergers or acquisitions in 2025.
Bureau members can access the report for free in the Business Operations channel on Slack. If you're not a member, you can buy a copy of the report on the Promethean website.
The most successful agencies are making strategic adjustments now. Whether that means refining your services, rethinking your pricing, or integrating AI, these insights will help you make smarter decisions. There is a lot of information and support in the community, so please ask if you need help finding an answer or someone to help.