The Agency Performance Pulse survey, conducted by the Alliance of Independent Agencies in collaboration with Synergist and BAND, provides a timely snapshot of how UK independent agencies are performing in the current market conditions and shares the top strategies being used to drive performance.
The findings are based on survey responses from 89 independent agencies, reflecting performance over the six months preceding the survey in August 2025.
UK agency market: what’s really happening?
Over half of agencies (54%) saw their revenue increase in the last 6 months.
The first half of the year has been uneven. 43% grew existing client revenue; 33% saw existing client revenue fall; 58% saw new business increase; 19% saw new business decrease. New business cycles are taking longer, with more project pitches and procurement playing a bigger role.
48% increased net profit (EBITDA); 32% improved average project margins; 62% faced higher employee costs.
Despite the rise in AI and in-housing, tighter budgets and rising costs, some agencies are still growing. Why? They run an always-on growth engine, sharpen propositions, and practice proactive account management. They also protect margin with operational discipline: robust agency project management software and reporting dashboards, enabling them to re-prioritise quickly, align resources to demand, enforce scope, and keep utilisation and margin real.
"But the most important business driver is data. It shows what’s working and what’s not - essential for staying ahead in a rapidly changing market. It makes performance visible and actionable. Because what isn’t measured won’t improve.
Jason Neale, Managing Director, Agency Works
What is the UK agency market outlook for H2 2025?
Looking ahead, independent agencies remain cautiously optimistic. Nearly half (45%) expect client revenue to grow in the next six months, and 58% anticipate more new business opportunities. At the same time, 61% predict employee costs will continue to rise, underscoring the challenge of balancing growth ambitions with cost management.
“We are cautiously optimistic — growth is achievable, but only if we continue to tighten our processes and sharpen our propositions.”
Encouragingly, over half of agencies expect profitability to increase, reflecting confidence that operational efficiencies and stronger client pipelines will support margins even in a high-cost environment.