B2B agencies are succeeding globally as never before, as they strive to enable growth for increasingly ambitious B2B clients, according to new data from B2BMarketing.net
Agencies have long been the powerhouse of the B2B sector, driving innovation and growth and helping B2B brands engage customers in a bewildering range of sectors. But until recently, the agency sector was something of a ‘cottage industry’ with prominent players typically independent, founder-managed and succeeding without the support of a global network or the backing of a holding company with deep pockets.
That’s all changed now, confirmed by new figures from B2B Marketing’s first Global Agencies Benchmarking Report, which shows global B2B agencies generated an extraordinary $1 billion in gross income in the most recent financial year. And that’s a figure which excludes a number of prominent global players, including Edelman, MOI, Just Global and The Crocodile.
The figures feature in the first B2B Marketing Global Agencies Benchmarking Report, published this summer by B2B Marketing (www.b2bmarketing.net), which features a league table ranking all B2B agencies with a demonstrable international operational footprint, together with ambitions. This is a new report which builds on similar (and ongoing) ones covering those agencies operated within and from the US and UK markets respectively.
Income for these global B2B agencies increased by 16 per cent in the past 12 months, suggesting this is a category which is growing well, despite variable economic trends in different regions. Global B2B agencies have HQs or outposts in all five continents, with Africa and South America the least well represented and Europe and North America the best represented. In terms of single locations, London is the most popular, with New York and San Francisco second and third.
So who is on the list, and how do they rank? Answering this question highlights the variety and diversity within the list, in terms of operating models, ownership and specialisms. The largest company on the league table (by some distance) is Harte Hanks, which is a 100-year diversified marketing services business. In second place is specialist media shop Merkle B2B, which has been formed by the merger of a number of B2B agency brands over recent years. In third is BBN International, which is a consortium of B2B creative agencies from around the world with a shared ownership model. If nothing else, it’s clear that the global B2B agencies category is a broad church, but it’s important to note that this list only includes those agencies with a demonstrable presence (meaning registered office and employees) in two or more continents. The majority of agencies in the B2B sector remains focused on a single territory and from a single global HQ. They may be doing work internationally, but have yet to commit to a presence on the ground beyond home turf.
What’s driving growth in global B2B agencies? In at least two notable cases Gravity Global and The Marketing Practice) it’s the involvement of external financing in the form of PE investment. Both these groups have grown significantly in recent years through PE-backed acquisition programmes, and both will no doubt be under pressure to demonstrate ongoing strong performance from the businesses that they have acquired.
Elsewhere, we can see the growing impact of larger marketing networks on this list – Ledger Bennett, for example, was acquired last year by Havas, demonstrating recognition of the need to have a B2B specialist within the broader group. VCCP Business is owned by Chime Communications, Bray Leino by Mission Group and (interestingly) both Agent3 and Velocity Partners by Next 15. It will be interesting to see whether the likes of Omnicom or WPP feature on this list in coming years – Publicis recently rebranded its specialist B2B outfit Octopus Group as Publicis Pro, with a bid to centralise B2B operations from the wider group and assist in its ongoing growth.
These figures and this league table are yet further proof of the globalisation and diversification of the B2B agencies category – and in turn, the B2B sector as a whole.
Given the notable exceptions (mentioned above who declined to provide the necessary financial information) it’s likely that this table will grow in length, in variety and in terms of the overall income generated. That’s great news for global B2B brands, or B2B brands with global ambitions, as it demonstrates the deepening pool of talent that’s available to help your marketing achieve its potential.
To download a copy of this report: https://www.b2bmarketing.net/feature-post-guides/global-agencies-benchmarking-report-2024/
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