A lift in business confidence across the UK, combined with growth for the wider economy, appears to be having a knock-on effect for the success of homegrown ad agencies.
London-based SYZYGY Group, which operates on the behalf of Mazda and AVIS among others, has announced that an outstanding year and the setting of new sales records during 2014 were in no short part down to its success in the UK.
The full-service agency saw its net sales rise 34% up to €47.1 million last year, also seeing a 41% rise in net income after tax.
“We can’t ignore that the strong UK economy has had a positive impact on the British advertising industry - with advertising spend rising by a total of 6.4%,” comments Andy Stevens, COO at SYZYGY Group.
Readings from the Office of National Statistics detail a 3% rise in Britain’s gross domestic product between Q3 2014 and the same period for 2013, resulting in a level 3.4% higher than a pre-economic downturn peak in Q1 2008.
UK bounces back
SYZYGY Group joins a number of its fellow agencies in reporting a strong performance in the UK last year, amid the market’s post-recession rebuild.
The UK arm of French firm Havas saw year-on-year revenue increases in every single quarter during 2014, resulting in an overall lift of 9% for the full year.
Stevens, who has seen first hand the impact of a UK economic recovery on SYZYGY Group, believes agencies are also benefitting from operating on well-cultivated ground.
“The UK market exhibits the greatest maturity in areas of e-commerce and search engine marketing. It also has the highest internet penetration worldwide and exports more goods via e-commerce than the USA.”
SYZYGY Group has visibility over progress in a number of markets - its UK base remaining a core part of a company which boasts offices in the US, Germany and Poland.
As well as having its own digital agency - SYZYGY - the Group was buoyed throughout 2014 by the performance of another of its UK agency properties in Unique Digital.
Growth filters down
SYZYGY Group is tipping its own organic sales growth to rise 20% in 2015, boosted by its international presence, although smaller agencies may also be riding high on the UK’s renewed business confidence.
Stats from Tech City delivered earlier this year highlight that 98% of digital companies in Britain class themselves as small businesses, with 11% of these operating within the advertising and sector.
Tech City found that three-quarters (72%) of advertising and marketing groups, spanning across SEO, social media, app development and online display, reported growth in revenue during 2014.
While acknowledging the presence of companies in London, Tech City also cited Brighton, Bournemouth, Hull and Cambridge as areas with thriving ad communities.