This report analyzes a selection of leading SaaS social media agencies and benchmarks them against the market. It compares and contrasts their software, services, on- and off-premise marketing capabilities, growth, positioning, and pricing. To drill into the details and get a closer view of each agency’s strength and weaknesses, this report analyzes their marketing automation, lead management, campaign management, and reporting capabilities.
The state of social media advertising is changing. Traditional marketers are scrambling to catch up to the social media giants that have led the evolution of brands on these platforms.
According to a recent study conducted by social media agency Brandwatch, more than a quarter of marketers use social media to engage with customers.. Read more about social media marketing industry report 2020 and let us know what you think.
It’s no secret that we have a lot of Agency Love here at Agorapulse. With our scalable program, all-in-one social media solution, and intelligent research, we enjoy assisting digital and social media agencies.
That’s why we’re thrilled to share our State of Social Media Agencies study for 2021 with you. We contacted over 100 agencies and asked them hundreds of questions on everything from size and breadth to paid vs. organic campaigns, pain areas, and future plans in order to compile this study. We discovered, among other things:
- Facebook is the most popular social media network for agencies to handle, yet it isn’t the one that produces the greatest organic results.
- Live streaming and Messenger marketing aren’t as popular with agencies as overall statistics indicate, which may mean they’re underutilized.
- Agencies are having trouble documenting and proving return on investment (ROI) across the board, but we have several options for you to explore.
Are you ready to delve into the findings?
Basics of an Agency: Size, Scope, and Pricing
Is your firm fairly typical in terms of size, scope, and pricing? Is your firm unique, or does it blend in with the crowd? Check out how your firm stacks up against the competition.
How would you classify your firm?
From boutique businesses to full-service organizations, agencies come in various kinds and sizes. When we asked our 113 survey respondents to classify their companies, they gave us a very equal distribution:
Of course, a few people didn’t fit neatly into any of the categories. PR companies, content marketing businesses, and specialist consulting firms are among the few.
What is the total number of customers that your firm has?
Many agencies are proud to brag about the big-name clients they’ve worked with. However, you may have to wait a long if you want to discover how many customers an agency manages.
In general, the agencies represented in our study are modest. Around 75% of respondents said they had 30 or fewer customers. The biggest group (35%) has less than ten customers, while the second largest group (25%) has between eleven and twenty clients.
Were you anticipating higher figures? Our study also covers agencies with more than 50 customers, although they only account for around 10% of all responses.
What is the size of your agency’s staff?
You would anticipate our survey participants to have tiny teams since they represent agencies with modest client lists. If that’s the case, you’re correct.
About half have teams of ten or fewer individuals, while a solid 20% are one-person businesses. Few responders (approximately 5%) have teams of 50 or more individuals, which is in keeping with the size of the participating agencies.
What services does your business provide?
Despite the fact that the overwhelming majority of survey participants (almost 90%) provide social media management services, it isn’t the most popular. Instead, 90% of companies provide content production, which may be used in conjunction with social media management or as a stand-alone service.
Many of the participants also provide services related to social media management. For example, more than 80% provide social media planning, and over 75% offer paid social and social analytics. Other digital marketing services are provided by a smaller proportion of respondents:
- 60 percent of people use email marketing.
- 55 percent of the time is spent on web development.
- 50 percent for search engine optimization (SEO).
- 50 percent of video production
How much do you bill each customer each month?
Even if your agency isn’t seeking to change its price, you should be aware of what competing firms charge. However, it is uncommon for agencies to reveal how they earn money.
More than 40% of those who took part in our study charged their customers between $1,000 and $3,000 a month. Only about a third charge $1,000 or less, while only around a quarter charge between $3,000 and $5,000. How does your firm rate on this scale?
What methods do you use to attract new customers to your firm?
Whether you’ve recently started your firm or have been around for a while, keeping your customer list filled is essential to your success. Despite the fact that survey respondents listed over a dozen distinct techniques for acquiring clients, some were more popular than others:
- Word of mouth – such as customer recommendations and testimonials – is the most popular method for agencies to discover prospects, with a 90% response rate. This is unsurprising, considering that over 90% of consumers rely on reviews when making purchases.
- The second most popular techniques are social media (55 percent) and the agency’s own website (also 55 percent). These are appropriate since they allow agencies to demonstrate their abilities in areas such as social media management, content development, and site design.
- Networking events are an excellent source of new leads, according to around 45 percent of respondents. Industry conferences, internet events, and networking meetings are examples of these.
Is your company active on the most popular social media platforms? Do you like to go into unknown area and concentrate on new platforms? Learn about the most popular social media platforms for agencies to handle and which ones provide the greatest results.
For clients, what social media platforms do you manage?
Almost every responder offers Facebook management, and almost every respondent offers Instagram administration. Facebook and Instagram’s high rankings on this list are unsurprising, given that they are the second and third most popular social networking platforms in the United States, respectively.
Surprisingly, over 80% provide LinkedIn administration and over 70% manage Twitter sites, despite the fact that these platforms’ adoption rates are just 28% and 23%, respectively.
Furthermore, YouTube is used by over 80% of American adults, and the site continues to grow in popularity. However, only approximately 55% of those who responded to our study manage YouTube for customers. If you’re searching for a new channel to add to your repertoire, YouTube is a good option.
What are the most effective social media platforms for achieving organic results?
Although Facebook is the most popular social media platform for our agency members to handle, not all agencies get the greatest organic results from it. Instead, Facebook and LinkedIn are tied for second place, with almost half of poll respondents claiming that these platforms provide the greatest organic outcomes for their customers.
According to over 60% of study participants, Instagram is the best-performing medium for organic social outcomes. Other social media platforms, such as YouTube, Twitter, and Pinterest, got less than 10% of the vote.
Which social media platforms provide the most negative organic results?
When we asked which platforms provide the poorest organic results, our respondents didn’t hold back. Overall, Twitter (over 40% ) is the poorest channel for organic outcomes, followed by Facebook (over 35% ).
Other media, such as YouTube, LinkedIn, and Instagram, were chosen by less than 15% of poll participants. TikTok and Pinterest both got less than 10% of the vote, owing to the fact that few people manage these platforms.
Agencies may pay for social statistics.
Is your firm using the most effective social advertising channels? Take a look at the best and worst paid social networks.
Which social media platforms are the most effective for generating paid results?
Despite the fact that sponsored and organic social media tactics may provide drastically different outcomes, participants in both groups identified the same channels as top performers. About 75 percent said Facebook provided the greatest advertising results, while 45 percent said Instagram provided the best return.
These findings may surprise you if you’re one of the many marketers who has battled to keep up with the constant changes to Facebook Ads. In the last year, however, Facebook Ads have grown in popularity among our poll respondents. Only 60% of respondents said Facebook Ads generated the greatest outcomes for their firm in our 2020 social media agency study.
Which social media platforms are the most ineffective in terms of paid results?
Because Twitter Ads got just 5% of the vote in our top advertising channels poll, it’s no surprise that it’s at the top of the worst performance list. Nearly 30% of poll participants identified Twitter as having the poorest paid advertising outcomes, with LinkedIn Ads (25%) coming in second.
Facebook Ads and Instagram Ads respectively got 20% and almost 15% of the vote, but there’s a catch. Several poll respondents said that Facebook Ads is the only paid channel they utilize, making it both the greatest and worst platform.
How Social Media Content is Managed by Agencies
Is your firm keeping up with the competition, or are you forging your own path? Learn about the types of social media material that agencies produce and how often they post.
How often do you share social media content?
It’s not always simple to know when to publish on social media. You must find a balance between being visible to your followers and being banned due to excessive posting. You should also be aware of common channel suggestions.
Our survey respondents, for the most part, follow industry best practices. About half of the people post once or twice a week, while the other half post every day. Only a small percentage of people (less than 10% in total) post less often. Only a few people publish once a week or once a month.
What kind of social media material do you post most frequently?
Because of the greater engagement and reach that video and live streaming tend to produce, they have gotten a lot of attention in recent years. If the numbers weren’t enough to persuade you, new features like LinkedIn Live or Instagram Reels are likely to do the trick.
However, just 15% of survey respondents said they upload video often. The majority of live broadcasts are hosted by less than 2% of the population. Instead, approximately 65 percent of respondents prefer to share pictures, while about 10% prefer to share links.
These findings indicate that authorities have taken a long time to prioritize video. If your firm currently provides video production, assisting customers in getting greater outcomes from video may be a good fit.
Is your team dealing with the same issues that other agencies are? Discover typical agency stumbling blocks and get a better understanding of how agencies approach difficult topics like reporting and ROI.
What is your most vexing problem?
Our poll respondents’ top four pain points are all intertwined:
- Return on investment (ROI) measurement and demonstration: 45 percent
- 35 percent of the time is spent managing customer expectations.
- Client education about the benefits of social media: 30%
- Client education on the importance of an agency: 25%
In essence, agencies are attempting to determine how to assess the value they offer and establish acceptable expectations. As a consequence, customers aren’t receiving the message, and they’re misinformed about the agency’s or social media strategy’s capabilities. You’ll have addressed your rivals’ greatest issues if your team can communicate what to anticipate from an agency and measure outcomes.
How do you show clients your return on investment?
Given how difficult it is for many agencies to show ROI, it’s not surprising that several respondents said they didn’t have any conversions to track. Those that do track ROI are primarily concerned with top-of-funnel indicators like social media engagement (65 percent ).
Many agencies also use middle-of-the-funnel measures like leads (60%) and bottom-of-the-funnel metrics like sales (40%) to measure their success (40 percent ). Some companies use website traffic (55%) and audience growth (40%) in their estimates.
What information do you provide to your clients?
Most agencies have a set of metrics that they report on, but they tweak them as needed to account for specific client objectives. According to the findings of our study, most agencies place a premium on the following outcomes:
- Growth of the audience
- Impressions and reach
- Participation in social media
Many also include brand tracking, competitive rankings, and top-performing content in their reports. These data are reported by agencies who handle sales and leads. Similarly, individuals in charge of paid-social reporting on metrics such as:
- Click-through-rate (CPC)
- Rate of click-through (CTR)
How often do you provide data to your clients?
Monthly reports are the most popular frequency among our survey respondents, with almost 70% adopting this schedule. Around 15% offer weekly analytics and more frequent reporting. Another 15% give quarterly updates that are less frequent.
Could a more sophisticated tool help your team be more productive or achieve greater results? Take a look at the most useful tools for social media companies.
What tools do you use to boost productivity or improve efficiency?
Given that almost 90% of survey respondents handle social media, it’s no surprise that social media tools are the most popular. The following are the most common choices for agencies:
In addition, over 60% of respondents utilize tools to create content, and 45% use an app to manage editorial calendars. About 45 percent use an app to make content selection easier.
Do you use a tool to manage your social media accounts?
It’s no surprise that 90% of respondents said they use a third-party service to manage their social media accounts. Built-in features may be used for a variety of tasks, including scheduling, engagement, and social listening and reporting.
Is your social media approach evolving as well? Or is your business losing out on some crucial development opportunities? Examine what your competitors are doing so that you can plan successfully.
Have you made any changes to your social media strategy since 2020?
Brands and agencies alike faced a slew of unexpected developments in 2020. Social media companies had to adapt fast, from a huge move to e-commerce to new advertising and engagement tactics.
Our poll respondents expect even more upheaval in 2021. In 2021, over 65 percent of respondents said they had already changed – or planned to modify – their approach. The 35% of people who don’t intend to alter their ways may have already settled into a routine.
Do you intend to do more, less, or the same amount of organic social media in the coming months?
Surprisingly, over 55% of participants do not intend to produce more organic social media material in the future, instead opting to maintain the current frequency. About 40% want to publish more, while just 5% intend to publish less.
Do you intend to run more, less, or the same number of social advertisements this year?
It’s possible that the 65 percent of respondents who said they’ll change their approach have their eyes set on sponsored social media. In 2021, more than 55% of respondents said they plan to increase their use of social advertising. In contrast, just 30% want to do so, and fewer than 10% intend to engage in lower-paid social activities.
Do you intend to increase, decrease, or maintain your Facebook Messenger marketing efforts?
When we questioned organizations about their plans for Facebook Messenger in 2020, 55 percent said they would be doing more of it. The response rate has dropped to 25% in 2021. Messenger marketing isn’t included in almost half of respondents’ social media management strategies, indicating that interest in the platform has waned.
Do you intend to post to social media groups more, less, or the same amount this year?
Despite the fact that our poll participants have a more favorable outlook on groups, the majority of them do not intend to conduct more posting in groups in 2021. About 30% said yes, while 25% said they planned to put up the same amount. Nearly 40% of respondents said social media groups aren’t important to their overall strategy.
Do you intend to broadcast more, fewer, or the same number of live events in the future?
The findings for live streaming in 2021 are almost identical to those in our 2020 poll. Around 40% of participants want to conduct more live streaming in the future, whereas 40% are unable to do so. These findings indicate that although agencies have a strong hunger for live streaming, many are still underutilizing this kind of material.
You may evaluate your agency’s strategy and ensure that your staff can stay up with the competition with these information in hand.
Despite its ability to organize your social media channels, Twitter remains the social media network at the heart of a lot of social media agency work. So, this year we will be watching Twitter closely, to get a sense of the big picture. There’s been a lot of talk about the shift from social networks to social platforms, but we believe that the type of social media agency work will continue to be dominated by Twitter, at least in the short term.. Read more about hootsuite report 2021 and let us know what you think.
Frequently Asked Questions
What are the social media trends for 2021?
The most popular social media trends for 2021 are Instagram, Facebook, and Snapchat.
Which country use social media most 2021?
China, with a total of 6.7 billion social media users in 2021.
What percentage of people use social media 2021?
The percentage of people using social media in 2021 is unknown.
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- social media industry report
- social media marketing industry report 2020
- social media benchmarks by industry 2021
- social media marketing industry report 2020 pdf
- social media benchmarks 2021