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Agency Profit Margins Report for 2025
Agency Profit Margins Report: Benchmarks and How To Increase Yours
When it comes to running a successful agency, every percentage point of profit matters. Yet, we uncovered that 50% of agencies are leaving at least 20% of their profits untapped. This gives agency owners everywhere something to reflect on. How is your agency doing in terms of profitability and how does it compare to benchmarks?
To help social media agencies reach their full potential, we surveyed 145 agency owners from across the globe to discover what separates high-profit agencies from those struggling to stay afloat. We looked at service diversification, pricing strategies, workflows, and time wasters.
In the report, we reveal key trends, benchmarks, and actionable strategies to help you optimize workflows, boost productivity, and ultimately, grow your margins.
Here are some of our findings:
The Profit Gap: you’re not alone
The profit gap is the disparity between your current profitability and the profitability you could potentially reach with the right optimizations.
Half of the agencies surveyed seem to be missing out on a significant chunk of their potential profits. Why? The culprit often lies in inefficiencies: cumbersome workflows, missed automation opportunities, and underinvestment in tools.
Our research found that more than 35% of agencies not using tools or automation operate at low margins or even at a loss. On the flip side, high-profit agencies (those with margins over 40%) are prioritizing workflow optimization and leveraging technology every step of the way.
What makes profitable agencies stand out?
We found agencies with the highest margins have a few things in common:
Commitment to Optimization
- 100% of high-profit agencies prioritize refining their workflows
What else can you find in the report: what kind of workflows do agencies optimize (it varies depending on the agency’s size), and what tools they use to do so.
Tool adoption
- Over 50% use specific tools and automations to enhance efficiency
What else can you find in the report: The list of tools our interviewed agency owners use and swear by is in our report. We identified over 60 reported unique tools & tool types, but some are more popular than others, no matter the size of the agency. Here we have tools covering a plethora of functions: project management, design, content scheduling, CRMs, analytics, etc.
Value per client
- High-profit agencies earn an average monthly contract value of $2.1k for the social media services they offer
What else can you find in the report: the average monthly contract value for each profitability bracket. Learn how much do profitable agencies charge, and compare their pricing strategies to less profitable ones. Some might think that the most profitable agencies must have the highest prices, but that’s not always the case.
You can close the profit gap
Here’s where to start:
- Refine your workflows: High-profit agencies optimize relentlessly. Map out your processes, identify bottlenecks and implement strategies to streamline operations.
- Leverage automation: Free up your team’s time by automating repetitive tasks like invoicing, reporting, and scheduling.
- Invest in tools that matter: Project management platforms and content schedulers can be game-changers for agencies of all sizes. Delivering value to clients requires your undivided attention.
This is just a glimpse. Explore the full report for a deeper dive into actionable recommendations backed by real-world insights. It’s a growth-focused resource, created to help social media agencies of all sizes, so you’ll find advice relevant to your situation no matter the current size or income of your SMMA.
How will this report help you?
This report is your first step towards higher profits in 2025. We’ve distilled insights from agency owners across the globe into this report. You’ll find detailed:
- Benchmarks to see how your agency compares
- Tools and strategies proven to drive efficiency and profits
- Practical advice tailored for small, medium, and large agencies
Ready to unlock your agency’s profit potential?