B2B companies are forecasting healthy increases in agency investments this year, according to Forrester’s Brand and Communications Survey 2024, which surveyed 205 B2B marketing leaders to understand their expectations for agency budgets over the next 12 months. The results generally reveal plans for a net increase in agency spending across all industries and company sizes. Here’s a summary of the key results.
- Positive Outlook: 41% of respondents from companies of all sizes and industries anticipate an increase in overall agency investments. This is an increase from the prior year and paints a promising picture for B2B agencies seeking to expand client spend. Only 17% of respondents said they expect a decrease in overall agency investments.
- Overall Net Increase: B2B marketing leaders are driving substantial investment growth in various agency areas. Across all tracked categories, respondents expect agency investments to rise. Few respondents are planning decreases, and those which do show a decline in all categories compared to last year. This further emphasizes the importance of agency relationships in reaching B2B brand and communications objectives.
- Digital Dominance: The trend toward a digital-first strategy continues, with significant expected increases for agency investments in digital marketing and content creation and development. Those planning increases in digital marketing investments are up over last year with 55% of respondents forecasting an increase in this area of agency investment. Investments in content creation and development are crucial for personalized buyer experiences through digital channels. Notably, this pattern of investments mirrors the plans for budget increases seen in B2B marketing programs for brand and communications.
- Larger B2B Companies Lead Even More With Digital: Companies with revenue exceeding $750 million are pursuing digital-first strategies with their agency partners. 57% of these respondents plan to increase agency spend on digital marketing. Social media management and operations and content creation and development also see significant increases with larger companies.
- Minimal and Targeted Decreases in Agency Investments: As mentioned above, overall the decreases noted in our survey are low. A couple of areas do stand out, however: brand strategy and market research saw the most significant decreases of all the areas we tracked. Not surprising, digital marketing shows the smallest area of expected decreases, with only a small percentage of respondents planning a decrease in this area.
The bottom line: this year’s survey shows agencies are poised for growth, fueled by digital strategies where they have strong partnerships with B2B companies. Forrester clients can find the full year-over-year results in our report: The State of B2B Brand and Communications Agency Investments, 2024. View additional research by Karen Tran and Ian Bruce, or schedule a call with us today.
