Covid-19 Impact on Agencies
Covid-19 Impact on Agencies: The Covid-19 pandemic dramatically altered how companies in the United States were able to do business. For those not deemed “essential,” like many marketing and advertising agencies, teams were sent home with laptops and desktops and forced to set up “temporary” WFH stations at home.
While some communities have slowly transition back into office life, others remain fragmented, dealing with tenuous client loads in continued uncertain economic times.
Digital Third Coast reached out to marketing and advertising agency executives across the country, including Gulo, Ignite Social and AdInfusion to find out how the pandemic has shaped their businesses.
Of the 30 executives Digital Third Coast talked to, two-thirds said Covid-19 changed how their company operated. Whether it was amending service offerings, or extending their current reach, the majority of agencies have changed things up since March 2020.
The top change cited? Roughly 75 percent of those polled for this post said they’ve changed their service offerings in the wake of Covid-19:
- Amending current service offerings (48%)
- Offering new services (29%)
- Reducing prices of services (16%)
- Brainstorming new services (16%)
- Increased prices of services (6%)
- Offered fewer services (6%)
The majority of those surveyed said they’ve made some type of financial change because of Covid-19. As one leader said, the pandemic has been a “humbling experience” – one that many have used to hone their offers and focus further on their business model.
While many companies didn’t overhaul their offerings, many became more nuanced in the cost of doing business. Several agencies said they became more competitive in their pricing, or more flexible in their payment plans for existing clients.
Client retention during these uncertain times has been key to agency survival nationwide. Some executives mentioned working more efficiently to maximize their clients’ budgets, while others said their dialogue with clients has become more open, as both sides navigate uncertain futures.
One thing is clear, the digital nature of our industry helped many agencies weather the storm. For most, even with a remote staff, business has been able to operate with (some) normalcy. Allowing teams to stay connected and productive in their service offerings, without dramatically changing the services they’re able to provide.
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