The Top 3 Reasons It’s Harder For Ad Agencies To Get New Business
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Frequently Asked Questions
Why is it harder for ad agencies to get new business?
Based on RSW/US research, the top three reasons agencies struggle to win new business are: it’s harder to break through to prospects (cited by 55% of agencies), there are fewer opportunities in the market (cited by 39%), and agencies can’t find the right person to drive new business internally. These challenges compound each other. A shrinking opportunity pool demands better outreach, but the right talent to execute it is scarce.
Why do ad agencies struggle to hire good new business directors?
New business directors at ad agencies last an average of just 18 months, one of the shortest tenures of any marketing role. The job is difficult, results take time to materialize, and agencies often set unrealistic short-term expectations. This high turnover makes it hard to build momentum and is one reason many agencies turn to outsourced new business programs as a more stable alternative.
Are there fewer new business opportunities for agencies today?
39% of agencies reported fewer opportunities in the market according to RSW/US survey data. Contributing factors include tighter marketing budgets, a rise in in-house agency capabilities, and longer decision-making cycles at brands. However, agencies with strong positioning, consistent outreach, and a clear value proposition are still winning new business. The market is more competitive, not closed.
What’s the most effective way for an agency to break through to prospects?
The most effective approach combines relevance and persistence. Outreach that references a prospect’s specific business situation, recent campaign activity, or industry challenge outperforms generic capability pitches. Paired with a consistent multi-touch follow-up sequence over 60 to 90 days, relevant outreach is still the most reliable way to convert a cold prospect into a first meeting.
As Vice President of Sales at RSW/US, Lee drives sales efforts to bring ad agencies and marketing services firms on board with RSW, creates content around successful new business tactics and takes part in RSW/US marketing objectives, including social media channels, blog content, webinars, video and speaking engagements. You can find him on LinkedIn (https://www.linkedin.com/in/leemcknightjr) or Twitter (@leemcknightjr).
