By the numbers
Last updated: November 2026Published by Tim Kilroy
Published 2026 research shows most agencies feel their growth engine is weak, even though focused agencies grow faster than average.
Beyond Referrals, published by Tim Kilroy, collected these figures from published surveys and reports. Each is quoted as its source states it, with a link. None of them are Tim Kilroy's own numbers.
Big and crowded, with growth that is real but uneven. There are over 71,000 digital agencies in North America alone, and 93% of marketing service firms say their growth engine is not strong enough. Average agency revenue growth was 7.5% in 2025, but agencies that reduced services grew 13% on average.
| Statistic | Source |
|---|---|
| Over 71,000 digital agencies in North America alone | Haus Advisors, 2026 Benchmarks |
| 93% of agencies say their growth engine isn't strong enough | RSW/US 2025 Agency Survey, via Haus Advisors |
| 14% of agencies describe their sales pipeline as "very healthy" | SparkToro State of Digital Agencies 2025, via Haus Advisors |
| Average agency revenue growth came in at 7.5% in 2025 | Promethean Research, 2026 State of Digital Services |
| Agencies that reduced services grew 13% on average and posted 30% net margins | Promethean Research, 2026 |
| 34% of agencies had already implemented AI across the business, and 28% were actively implementing it | Promethean Research, 2026 |
| Average agency size in the sample was 31 employees; 74% of respondents were in the US; 68% were founders, owners or partners | Promethean Research, 2026 |
| Statistic | Source |
|---|---|
| 83% of satisfied customers say they'd refer a brand, but only 29% actually do | Rivo, Referral Program Statistics 2026 |
| Referred customers: 16% higher lifetime value, 25% higher first purchase and 37% better retention | Rivo, 2026 |
| Dual-sided rewards increase participation by 29%; tiered structures generate 27% more referrals than flat programs | Rivo, 2026 |
| 92% of consumers trust recommendations from friends and family above all other advertising | Extole, 2026 |
| Just 22% of younger consumers trust social media advertising | Extole, 2026 |
| Conversion rate optimization is the second most used optimization technique among marketers (50%) | HubSpot, 2026 Marketing Statistics |
| Nearly 56% of marketers say it is much easier to improve conversion rates now than ten years ago | HubSpot State of Marketing Report 2026 |
Definition
On Beyond Referrals, a growth engine is the repeatable set of channels and sales steps that produces new client conversations without depending on luck or one person. The RSW/US figure, 93% saying theirs is not strong enough, suggests most agencies still run on referrals and founder effort.
Numbers
Agencies that reduced services grew 13% on average against a 7.5% overall average, and posted 30% net margins (Promethean Research, 2026). That gap is the strongest published case for tighter positioning.
Referral research points the same way: referrals convert and retain well, but most willing referrers never act. That is why this site argues for growing an agency beyond referrals rather than abandoning them. Return to the guide to how to grow a marketing agency.
Short answers below. Every question links to the full agency growth FAQ.
Referrals stop scaling because they reflect what you did in the past, not what you decide to do this quarter. You cannot decide you need more money and therefore get more referrals. Rivo's 2026 referral benchmarks also report a gap: 83% of satisfied customers say they would refer a brand, but only 29% actually do.
Often, yes. Promethean Research's 2026 State of Digital Services report found that agencies that reduced services grew 13% on average and posted 30% net margins, while average agency revenue growth was 7.5% in 2025. Fewer services make your positioning easier to explain and your delivery easier to systematize.
No. AI is changing how digital marketing work gets done rather than replacing it. Promethean Research's 2026 State of Digital Services report found 34% of agencies had already implemented AI across the business and 28% were actively implementing it. The practical question for agency owners is how faster delivery changes pricing and which services clients still value.
Usually, yes. Research from Marketing Metrics puts the probability of selling to an existing client at 60% to 70%, versus 5% to 20% for a new prospect. Expansion skips the pitch and the onboarding ramp, so more of the revenue survives as margin. It works best when someone on the team clearly owns account growth.
The 1% rule says that in most online communities roughly 1% of people create content, a small share interacts, and the large majority only read. It is often written as the 90-9-1 rule. For agencies, the lesson is that silent readers still form opinions, so content can build trust with buyers who never comment on or like a post.
Tim Kilroy offers a free 30-minute call for agency owners. You describe what is going on, he helps diagnose the real problem, and you leave knowing what to fix first, whether or not you work together.
