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March 2018

Digital Agency

Sectorwatch

Digital agencies will be needed in 2018 to help clients navigate the rapidly changing digital marketing landscape. New trends and technologies (Mobile, Chatbots, Video, etc.) are entering the marketplace and with the need to become more visible and reach more customers, digital marketing will offer advancements in emerging technologies as consumers demand a more integrated experience. Techniques like Big Data and analytics, Content Marketing and Email/Marketing Automation have continued to grow in importance and will be used by many businesses.

Industry Trends:

• Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
• Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
• Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation