Agencies’ expectations for their businesses and the advertising sector remain positive in 2024, according to the latest edition of the VanPro survey, carried out by the SINAPRO/FENAPRO Ecosystem together with 309 agencies from 20 Brazilian states and the Federal District. The data, collected in February, shows that the majority of agencies showed growth last year and predict positive prospects for this year.
“The new survey confirms the growth trend of agencies in relation to revenue and the perception of stability and a better future for the sector. The research also shows a good business environment, and that a good number of companies managed to identify or create opportunities to take advantage of them successfully”, says Daniel Queiroz (cover), president of the National Federation of Advertising Agencies (Fenapro).
In the current survey, the VanPro survey, considered an important barometer of business and management of companies in the sector, shows that 80% of agencies reported stability or growth in revenue (amount paid to agencies, excluding advertisers’ investments). Among those that grew, 30% had an increase in revenue above 30% in 2023, compared to 2022.
From a financial point of view, the research shows that there is a scenario of continuity in the evolution of companies’ revenue: for 53.4%, it is on the rise and, of these, 51.5% (equivalent to 27.5% of the total ) indicate growth of more than 30%. On the other hand, 20.4% of companies indicate a loss of revenue, and in 10% of them, the loss was greater than 30% in 2023. Those that indicated stability, in the comparison of 2023 with 2022, represent 26.2% of the interviewees.
Perspectives
The interviewees’ perception of the future had a slight improvement, compared to previous years. The number of companies that indicated the future prospects as good or very good for their businesses was 70%, compared to 65% in the first survey of 2023. Those that signaled as bad, very bad or plan to interrupt activities are just 4% of the total, and those who cannot predict are 3%. Expectations of stability were highlighted by 23% of agencies.
“The scenario remains positive in terms of the future for the sector, as 93% indicate that the scenario is stable or points to good prospects, and 70% consider the scenario to be favorable in 2024. This demonstrates that business and sector growth today depends more on take advantage of market opportunities and create new possibilities for offering products and services, with a consequent increase in revenue, without depending so much on external conditions”, analyzes Roberto Tourinho, president of Sinapro-SP and member of the Fenapro Working Group.
It is important to highlight that more than 50% of agencies can still improve their strategic planning, budgeting, pricing, results analysis and control processes and contracts.
“To this end, the SINAPRO/FENAPRO Ecosystem has been developing training initiatives and tools, so that agencies can move forward on these issues and take advantage of the good perspectives identified by the majority of the sector”, highlights Ana Ceclia, director of Fenapro.
Regarding the main challenges in 2024, almost 43% point to attracting customers and converting proposals, while 21% cite people management (selection, retention, development, climate, etc.) and 19%, the definition and management of processes (flows, controls, execution monitoring, etc.). The remaining 17% point to other challenges in areas such as financial management, customer retention and increasing margins.
AI Tools
Regarding the application of automation and Artificial Intelligence tools in the creative work of agencies, such as ChatGPT and DALL-E, the survey showed that 64% of the agencies interviewed already adopt such resources, more than double the previous survey (31%) , and 23% intend to implement them throughout 2024. On the other hand, 11% do not intend to use automation and AI tools in creative work (compared to 30% last year) and 2% intend to use these technologies from 2025.
Profile of participating agencies
The predominant profile of VanPro survey participants is similar to that of previous surveys. The majority of respondents from agncias full service (96%), with a team of up to 20 people (55%), who have been in existence for over 20 years (47%) or between 11 and 20 years (32%). Of them, 96% are associated with Sinapro in their state, and 76% with CENP.
As with all VanPro surveys carried out to date, the annual revenue profile of companies is more diverse than other factors. The highest frequency of agencies with revenue of up to R$1 million, representing around 34% of those interviewed. Approximately 29% of all survey participants have annual income between R$1 million and R$3 million; 10%, between R$3 million and R$5 million, and 12%, between R$5 million and R$10 million. Companies with annual revenue exceeding R$10 million represented 15% of respondents.
The size of agencies in terms of staff is also quite diverse: those with a team of between 1 and 10 people represent close to 28% of the total number of companies, very close to those between 11 and 20 people, which represent 27% of the total. Those with 21 to 40 people are just over 22% of the total, while agencies with more than 40 people are 23% of the total.
*Cape photo: Chico Barros
Follow Adnews on Instagrame LinkedIn. #WhereTransformationHappens
