The latest research, insights, tools, and resources that make managing a digital shop easier,
How Agencies Build for the Web is Shifting
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Webinar: The Ultimate Digital Agency Tech StackJoin Marija and me Wednesday the 18th as we discuss how digital agency tool needs evolve as agencies grow, plus the top tools digital agencies use to run their shops! Join us live, or register to watch the webinar later. Maybe with a cold drink. Maybe on a beach. Or in a hammock. New Research: The Digital Agency Webdev Trend Report: 2024We took a deep dive into how agency webdev and design are shifting in light of everything that's been happening lately (AI). This report details the top trends and how they're affecting work at digital agencies. Here's an excerpt from the Executive Summary: Our survey results indicate that AI and automation are significantly transforming the web development and design industry. 52% percent of respondents identified AI as a key trend impacting their work. Developers are increasingly utilizing AI for code generation, with half incorporating it into their workflow, while designers primarily use AI for image editing and enhancement. However, this increased efficiency has heightened client expectations for faster development and tighter project timelines. Thanks to Productive, the report's free for everyone!
New Service: Research for Digital AgenciesOver the last few months, I've expanded our research capabilities for digital agencies. This is work that we do FOR digital shops ON their target markets. It came out of the need for more detailed information when constructing Repeatable Revgen Systems for agency clients. So far, it's been a lot of market sizing, industry research, ICP development, and buyer committee identification, but it's incredibly flexible and I think it could help a lot of medium-to-large-sized shops (25+FTEs). There aren't a lot of parameters around this service right now, but if there's something you'd like to learn about your target market, reach out, and I'll see if we can help. All the best, -Nick |
Research & Strategy for Digital Agencies
The latest research, insights, tools, and resources that make managing a digital shop easier,
TL;DR It isn't easy to tell when an agency's running hot, but we can get a sense of how fragile an agency is with a few key metrics: Utilization: Track it closely; pushing over 90% can turn small problems into big ones, especially in consultancy-style agencies. OpEx/Adjusted Revenue: Keep support expenses in check. Below 20% is lean, above 35-40% burns margin. Cash Reserves: Aim for a few months of OpEx on hand. Your tolerance for risk will guide the exact number. Sales & Marketing...
TL;DR Leadership teams need to know and appreciate the work other departments do. This knowledge and appreciation unlock the ability to be proactive. Knowing what others are working on is easy, but appreciating their work is difficult. Acquihires are great for solving this. Owners should actively manage their leadership team by instituting: cross-functional workshops, leadership retreats, joint goal setting, transparent reporting, and individual check-ins. Another Promethean capacity update:...
TL;DR There are real risks to specializing a digital agency in a narrow niche. Agencies exist because most in-house teams live further down the adoption curve, but that curve shifts, and commoditization can arrive faster than planned for. Building your business on a singular platform or vendor puts you at their mercy for better or worse. We just published a PR Brief on the latest WordPress situation specifically about this. Industries can shift quickly and relying on a specific trend to grow...