Snapshot: Annual Survey on the Financial Performance of Marketing Services Companies 2025
We recently launched the findings of our latest Annual Survey on the Financial Performance of Marketing Services Companies in the UK. The results were presented by Callum Gritt, Director at Moore Kingston Smith and Paul Winterflood, Partner and Head of Media Corporate Finance at Moore Kingston Smith, who highlighted the key trends and insights emerging from this year’s data. We are delighted to share a summary of the key themes covered across both sections of the presentation.
This year’s results reflect another challenging period for the industry, with three of the six disciplines reporting a decline in revenue, and overall average gross income growth sitting at just 3.4%. Despite expectations earlier in the year (as part of our Marketing Services Outlook Survey) of around 9.4% growth, economic pressures meant that outcomes were far more modest. Media buyers were the clear outlier, delivering 12.5% growth, while digital agencies saw a 6.5% decline and PR reported a rare reduction in revenue – only the third time this has happened outside of Covid and the recession.
Even with these headwinds, agencies showed considerable resilience. Operating profit margins broadly held steady, with an industry average of 10.2%, and PR remained the top-performing sector at 13.7%, with no PR consultancies in the survey reporting a loss. Revenue per head has stabilised at around £95,000, and staff costs remained consistent at 61.8% of gross income, underlining the importance of cost discipline in maintaining profitability.
A key theme in this year’s data is the widening gap between the top performers and the rest of the industry. The entry point for the top quartile for revenue growth was 13.5% and for operating profit margin was 18.2%. 17 agencies met both thresholds, and these high performers typically operate in areas of sustained or growing demand – including strategic communications and public affairs, social and influencer, experiential and events, specialist retail/design, and programmatic. Notably, digital agencies did not feature in this top cohort this year.
From an M&A perspective, these high-performing segments align closely with where acquirers and investors are most active. Private equity continues to reshape the landscape: 56% of the Top 50 independents are now PE-backed, compared to just 22% in 2012. Although there is no shortage of well-funded acquirers, the market is experiencing a shortage of high-performing businesses coming to market, particularly in digital, where revenue growth and deal quality softened in 2024. Aggregate revenue for the Top 50 fell by 3% this year, influenced by weaker trading and fewer high-quality opportunities combined with some larger agencies leaving the Top 50 due to being acquired e.g. Blis who sold to T-Mobile.
We also announced this year’s Financial Performance Hall of Fame, with eight agencies achieving all criteria – the same number as last year despite continued tough trading conditions. The agencies recognised were:
- 1000heads Limited
- Boundary Visualisation Limited
- Innocean Worldwide UK Limited
- Jack Morton Worldwide Limited
- Momentum The Growth Consultancy Limited
- Nteractive Consulting & Events Limited
- Smithfield Consultants Limited
- Zenith UK (Media) Limited
These agencies met demanding thresholds including 20%+ operating profit margins, staff costs below 55% (50% for media buyers), real revenue growth, and fee income above £130k per head, alongside strong balance sheet discipline.
One message is clear throughout: the agencies outperforming in today’s environment are those delivering high-value strategic work, impactful client experiences and specialist expertise, often supported – rather than replaced – by AI. With over 60% of agencies now integrating AI tools, this is expected to be a growing driver of productivity, efficiency and future margin improvement.
If you have any questions about the findings or would like to explore the results in more detail, please get in contact.
