Digital creative agencies are for the first time proving more profitable than their traditional advertising rivals, it emerged yesterday.
A quarterly index measured by Willot Kingston Smith shows that average operating profit margins at digital agencies are 11%, up from 8.6% in March.
In contrast, mainstream ad agencies, which typically create for TV or press campaigns, have a 10.1% margin, according to the accountant’s marketing index, obtained by the Financial Times.
The index shows the stronger margins for digital ad agencies coincide with a growing number of industry deals, whereby stakes are sold at higher rates than a traditional agency could command.
Jul 17, 2007
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