Benchmarks

Agency Benchmarks 2026: Margin, Clients, Pipeline and Capacity by Agency Size

Every number on this site comes from this page. Each one shows who measured it, how many people they asked, and whether they were asking marketing agencies or someone else.

Last updated: . Reviewed every quarter, and whenever a new report comes out.

Net margin after tax, by agency size
50+ people: 8%Average: 13%Under 10 people: 19%

Source: Promethean Research, State of Digital Services 2026 (via published summaries), 119 agency leaders, 2025.

Revenue per full-time employee
Average: $163k

Source: Promethean Research, Digital Agency Industry Report 2026 (via published summaries; full report is paid), Sample not stated, 2025.

How long agencies keep a typical client
Lose a typical client before 12 months
25%
Keep a typical client more than 3 years
31%

Source: SparkToro, State of Digital Agencies 2025, 376 agency owners and consultants, Sep to Oct 2025.

All numbers

NumberValueSourceSamplePopulationMeasuredStatus
Net margin after tax13%Promethean Research, State of Digital Services 2026 (via published summaries)119 agency leadersDigital agencies2025Secondary
Revenue per employee$163kPromethean Research, Digital Agency Industry Report 2026 (via published summaries; full report is paid)Sample not statedMarketing agencies2025Secondary
Revenue growth vs margin growth59% vs 31%Productive, State of the Agency Industry ReportSample not statedProductive customers (skews European and mid-size)2025Primary
Why clients leave48%Setup, 6th Annual Marketing Relationship Survey400+ brand and agency respondentsBrands and agencies2026Secondary
Client tenure31% / 25%SparkToro, State of Digital Agencies 2025376 agency owners and consultants84% solo to 25 peopleSep to Oct 2025Primary
Healthy sales pipeline14%SparkToro, State of Digital Agencies 2025376 agency owners and consultants84% solo to 25 peopleSep to Oct 2025Primary
Main source of new clients75%RSW/US 2025 (via Haus Advisors)Sample not statedMarketing agencies (from a survey of marketing and professional services firms)2025Secondary
Unbilled work57% / 30%Ignition, 2025 Agency Pricing and Cashflow Report273 agency managers and executivesUS agenciesApr 2025Primary
Invoices 30+ days overdue59%Intuit QuickBooks, 2026 Small Business Late Payments ReportSample not statedSmall businesses (not agencies)Not agencies2026Primary
Billable utilization66.4%SPI Research, 2026 Professional Services Maturity Benchmark509 organizations across 7 industriesProfessional services firms (consulting, IT, software, accounting), not marketing agenciesNot agencies2025Primary

Rules of thumb

These aren't survey results. They're targets that consultants and operators use. Useful, but treat them as guidance, not data.

  • 50%+

    of agency gross income (revenue minus media and pass-through costs) is the agency-wide delivery margin target, with 50% to 60% as the healthy range. Projects should run 10 to 20 points higher.

    Parakeeto (agency profitability consultancy), 2024.

Where each number comes from

Promethean Research. A survey of 119 digital agency leaders, run in February 2026. The full report is paid; the figures here come from its published summaries, so they are marked as secondary.

Promethean Research, Digital Agency Industry Report 2026. A separate report that maps staffing across more than 1,200 agencies. The revenue-per-employee average comes from its published summaries; the sample behind that specific figure isn't stated, so it's marked as secondary.

Setup. The sixth annual survey of brand and agency marketers, with more than 400 respondents. Setup is itself an agency, which is worth knowing.

SparkToro. 376 agency owners and consultants, surveyed from September to October 2025. 84% run solo practices or agencies of up to 25 people, and 63% serve North American clients.

Productive. An annual report from a vendor of agency management software, based on its own customers. The sample leans European and mid-size.

RSW/US. A 2025 survey of marketing and professional services firms on how they win new business, reported through a compilation by Haus Advisors. The summary doesn't state the sample, so the figure is marked as secondary.

Ignition. 273 agency managers and executives. Ignition sells proposal and billing software, so it has an interest in the topic; the sample and questions are published.

Intuit QuickBooks. A survey of small business owners in general, not agencies. It's used here only for late payments, where agencies behave like other service businesses.

SPI Research. Professional services firms such as consulting, IT and accounting, not marketing agencies. It's the largest public benchmark on utilization, so it's shown with that warning.

Parakeeto. An agency profitability consultancy. Its delivery-margin targets come from working with agencies, not from a survey, so they appear under Rules of thumb.

What isn't known yet

How many minutes a client report really takes at a small agency: every number found so far comes from a company that sells reporting software. Churn by agency size with a published method. Utilization measured on marketing agencies, from a public source. When a reliable source turns up for any of these, it goes on this page, dated.

How to cite this page

Agency Arithmetic, "Agency Benchmarks 2026", updated September 2026. https://theagencyarithmetic.com/benchmarks/