Digital agencies boom, but trail major agencies

LONDON - Digital agencies benefited from the continuing boom in internet advertising last year, posting average year-on-year profit increases of 56 per cent.

A New Media Agencies Financial Intelligence study examined the latest audited results of the top 40 digital agencies in the UK and found that profits rose during that period. However, digital agencies' profits remain below the majority of above-the-line agencies.

The report said that one of the main reasons for this is that digital agencies are often reluctant to charge clients adequate fees, plus these agencies often rely heavily on expensive freelance labour.

ILG Digital, the parent company of digital media agency
I-Level, recorded one of the highest profit per employee rankings. According to the survey, I-Level recorded a profit per head of almost £28,000 per year.

Other digital media agencies measured included Profero, which recorded £2,700 profit per employee and LBi, where profits equalled £3,000 per head.

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