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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

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.

The German Media Market 2023 - An Overview

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.

Media monitoring - How expensive is it and for whom is it worthwhile?

The idea of monitoring mentions of one's own company on all channels sounds tempting. After all, measuring the success of sending out a press release can be quite useful.

For this purpose, there are a number of providers who monitor the media market on a daily basis with crawlers and specifically search for your company name in the monitored media sources.

For this survey and analysis service, which often includes the automated preparation in simple dashboards, often thousands of euros per year are due.

The easiest and most practical way or work around for the vast majority of companies is to simply create an Altert on Google News that will notify you when your company name is mentioned in an article, because - if it's not there today it's not relevant. With the ability to set the time period, for example, to one year, and the number of search results to 200, you can quickly copy the URLs to the articles, along with the teaser text, into a spreadsheet, and most importantly, for free.

Some providers already charge several thousand euros per year just for depositing these so-called press clippings (=links to the articles) - in addition to the costs of media monitoring or press clippings, which provide the URLs to be deposited.

5 things I would have liked to know before the founding

1. How to create an effective marketing strategy

2. How to create an effective financial system

3. How to network and build relationships

4. How to scale a business

5. How to set up a business legally and ensure that you meet all legal requirements