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The great agency death - Why 80 percent of all agencies will no longer be able to cover their costs in 2023

10/14/2022 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

The great agency death is a problem that will confront many agencies in the coming years. It is expected that by 2023, more than 80 percent of all agencies will be unable to cover their costs.

This is due to a number of factors, including increasing competition, which means many agencies will have to lower their prices to attract business. It's also possible that some clients who turn to large agencies prefer to buy individual services instead of an expensive, full-service offering, which means agencies also receive less money per job.

In addition, increasing technologies are increasing the use of automated processes, which means that much of the work that used to be done by agencies is now done by computer programs. This results in agencies needing fewer employees to do their work, which in turn results in cost savings.

Another factor driving agency death is the increasing competition from new, very low-cost agencies that are often used to replace existing agencies. These new agencies often offer much better value than many established agencies, making them more popular with clients.

Finally, some agencies may also be affected by the impact of the Covid 19 pandemic, as some industries have suffered a severe downturn that has reduced demand for agency services.

All of these factors contribute to the possibility that many agencies will no longer be viable by 2023 because they will not be able to cover their costs. It is therefore important that agencies actively seek new ways to reduce their costs and develop new revenue streams now in order to survive in an increasingly competitive landscape.

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The German Media Market 2023 - An Overview

10/14/2022 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

The media market in Germany has changed significantly in recent years. Traditional media, such as newspapers and magazines, have lost importance and revenue, while online media, such as social networks and streaming platforms, have grown strongly. While television will still play an important role in Germany in 2022, the importance of the Internet will continue to grow.

Revenues in the German media market in 2022 will be determined primarily by developments in digital media. For example, digital advertising, video-on-demand (VoD) and social media platforms will account for a large proportion of revenues. The online games business will also become increasingly important.

Print media will still play a role in the German media market in 2022, but their share of revenues will continue to decline. This will primarily affect newspapers and magazines, which are being replaced more and more by digital media. Some publishers are trying to hold their own in the market by also offering their content digitally.

The German media market in 2022 will also be shaped by new technologies such as virtual reality and augmented reality. Developments in the field of artificial intelligence (AI) will also continue to play a crucial role. The use of AI in advertising will help improve the effectiveness of advertising campaigns.

Overall, the German media market will continue to develop in the direction of digitalization and innovation in 2022. Sales will be driven primarily by innovative digital media such as apps, VoD and social media, while traditional media will lose importance.

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Find suitable agencies - With our agency directory you get a comprehensive overview

09/07/2022 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

The search for the right agency is often difficult. In the price battle for the best advertising spaces, it is difficult for inexpensive providers to place or appear with your ad among the first ads on the first or second. After all, the cost of a click (PPC: price per click) in Google Ads , formerly known as Google Adwords, can quickly exceed €5 and more.

The first search results or are therefore dominated primarily by providers, which bring high-priced products and services to the woman or man. With given PPC costs, it is a question of the product price or price for an average deal when providing services and the so-called conversion rate, any rate that describes the number of sales -sales - and divided by the number of clicks generated. A cost-covering ad strategy and keyword selection together with constant optimization is necessary to become cost-covering, in the best case profitable.

Therefore, in the interest of better market transparency, it makes sense to include not only those providers listed high up in the list of postential contractors, but also to find agencies and service providers who cannot (yet) afford or do not want to invest a higher share of their revenue in higher click prices.

With our databases, starting with the media & PR database , through the company database to our agency database, we make a contribution to making the market more transparent, creating visibility on for smaller providers and facilitating the choice of the appropriate agency or provider.

For example, you can discover similar providers in your city or region based on keywords and compare them with each other, filter, sort and to be able to put the entries first on a long list, later on a short list.

At the same time, our address databases represent an efficient acquisition tool for companies, agencies and service providers and offer added value in customer acquisition in the B2B sector, more precisely: for directmarketing purposes and for expanding the individual acquisition strategy.

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The real reason why your marketing campaigns fail - and what you can do instead

07/07/2022 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Click prices between 3 and 7 euros for online advertising in the B2B sector quickly collapse all business plans and revenue expectations of startups & Gründer:innen. For all those who have not previously built a test balloon to check the current click prices in their niche, before deciding to develop or offer a product or service, this circumstance can mean a rude awakening later on.

The problem: In contrast to the end-customer business (B2C), providers in the business-to-business (B2B) sector are vying for far fewer active search queries and thus potential customers. Since every provider tries to direct a few of the few search queries of potential B2B customers to its own website in the first place, the PPC click prices for search engine advertising on Google Ads, for example, are correspondingly high.

Postal mailings represent an alternative for the acquisition of customers in the B2B area. Contrary to the prices in online marketing, this offline marketing method has a decisive advantage: calculable costs. Because: The price for printing and mailing the advertising letters, along with the acquisition costs for the marketing addresses, is already fixed in advance and can therefore be planned.

With our lettershop service, we can take over this task completely for you if you wish. From address selection to printing and dispatch. Inquire now and generate more leads!

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