In this GYDA Talks, Robert talks to John Readman of Modo 25 and Ask Bosco. John has over 25 years of experience in sales and digital marketing, scaling martech, SaaS and agency businesses.

Currently, he’s building ASK BOSCO® - Marketing Analytics AI and Modo25 - Digital Marketing Inhousing - a business he set up with Bonamy Grimes, the Founder of Skyscanner, to revolutionize the way brands and agencies work with their performance data and teams in increase sales and reduce ad spend.

Rob and John discuss the current state of the digital agency market and strategies for success in a challenging environment. Key points from their conversation include:

Market Conditions

• 2024 was a tough year for many agencies, with most considering it a success to remain flat
• The market is currently challenging, with 9 out of 10 agency leaders at a recent dinner agreeing it's the worst time to run a digital agency
• However, about 1 in 10 agencies are thriving, particularly those with specialised niches

Agency Landscape

• There's an increase in the number of agencies and experienced freelancers in the market
• The market is oversaturated with generalist agencies, but not with specialised ones
• Many agencies try to be "all things to all people" instead of focusing on specific niches

Strategies for Success

• Specialisation: Agencies should focus on specific niches or industries rather than being generalists
• Client Selection: Regularly review client profitability and team satisfaction with clients
• Pricing: Many agencies haven't increased prices despite inflation, but those who have often see little negative impact
• Team Satisfaction: Conduct internal surveys to understand which clients the team enjoys working with

The Star Principle

Robert mentions Richard Koch's "Star Principle" for successful strategy:

1. Be in a growing market space
2. Have a tightly defined niche that is growing
3. Aim to be the number one player in that niche

The podcast emphasises the importance of specialisation, strategic pricing, and focusing on profitable, enjoyable client relationships to succeed in the current agency landscape.

• askbosco.io
• modo25.com