To say it has been a difficult time for companies could be an understatement. Between funds cuts and the strain to ship with restricted sources, it has been a tricky market. And once we began to place collectively the UK Businesses Benchmarking Report (which you’ll find right here), we weren’t shocked to see that sentiment stated from company after company. Take a look at our full evaluation of selling companies within the UK.
Nonetheless, we’re additionally right here to say there have been loads of optimistic silver linings as soon as we dug a bit deeper into the info. As at all times, our report showcases a set of league tables to reveal the largest and finest companies within the UK – from the quickest rising companies to specialists in model, content material and way more.
Earlier than we bounce in, it’s necessary to notice that we requested companies to supply us with monetary information from their most not too long ago closed monetary yr. 30.9% of companies finish their monetary yr in December, 26.2% finish their monetary yr in March and 13% finish theirs in Might. Solely a handful of companies stated theirs ended within the remaining months. With that in thoughts, as a lot as we wish this to be the case, not the entire information collected is from precisely the identical interval.
Knowledge assortment started in September 2024, and so the vast majority of the info we’re discussing is roughly from March 2023 to March 2024, and December 2023 to December 2024 (these whose monetary yr resulted in December had been supplied an extension to make sure their accounting was full). It’s value noting at this level that that is the case with yearly’s iteration of this report, so the year-on-year comparisons nonetheless present a dependable manner of seeing tendencies over time.
Nonetheless, aside from the monetary information and headcount, the opposite challenges said on this report are very a lot ‘within the current time’ so we will guarantee that is up-to-date.
As well as, to ensure there may be little question across the accuracy of the info we current, accountancy agency Moore Kingston Smith have partnered with us to make sure all figures are correct and reliable.
So what’s the state of the company market trying like? For those who’re a client-side marketer, we hope this characteristic provides you some perception into the market you may be delving in. Alternatively, when you’re an company, this characteristic offers you a greater comprehension of the place your company stands in comparison with your opponents.
Gross earnings has elevated YoY for the primary time shortly
Earlier than we get began, it’s value noting that in our 2024 version, we managed to incorporate 106 companies whereas in 2025, we’ve included 83 companies. Of these 83, the next share of companies had been smaller.
Whereas some may argue this could possibly be as a result of rise in automation or funds cuts, we famous that smaller companies have been featured within the league tables for the previous few years. And a number of the bigger ‘heavyweights’ had been notably absent on this yr’s tables because of having a harder yr than ordinary.
We noticed a 5.3% enhance in the latest monetary yr’s gross earnings from £5.4 million within the earlier monetary yr to £5.7 million. That is definitely a step in the best route. Contemplating the common gross earnings was £5.6 million in 2023, £5.91 million in 2022, and £5.92 million in 2021, this means a long-term and considerably inconsistent financial impression from Covid-19 (as a lot as folks need to neglect).
Whereas there might not be a gradual rise to development in the previous few years, a rise in gross earnings definitely signifies we’re heading in the right direction. And companies agree as properly – 72 out of 83 companies count on both development or robust development within the subsequent 12 months.
On the flip aspect, 45 companies stated they’re discovering the present state of the marketplace for B2B advertising and marketing companies to be difficult. So whereas 86.8% of companies are predicting development, they’re additionally totally anticipating it to be set with a plethora of obstacles alongside the best way. One in every of these hurdles?
Properly, we requested companies what their most important problem presently was, and overwhelmingly, they stated their #1 problem was the strain on shopper’s budgets. A whopping 84% stated it was both a major or very vital problem, which doesn’t come as a shock as companies cited this as their most important problem final yr as properly.
Pitch not so good
Within the final 12 months, there was a mean pitch charge of 31.5 conferences. The common pitch charge success was 52.4%. Once we checked out final yr’s information, we seen that the common pitch win charge for companies was 57% – contemplating there was an 8% lower in win charges, this might counsel that quite a lot of conferences are being had just for them to result in a win solely half the time (looks as if a wasted effort). With that being stated, maybe we must be shifting the needle past the normal pitch assembly.
David van Schaick, former CMO, Advertising and marketing Apply and an Company Skilled for Propolis, commented on this saying: “Businesses are more and more cautious about if and once they select to pitch as a result of the funding that goes right into a pitch is critical and sometimes means enterprise isn’t worthwhile within the first yr. Pitches may be accompanied by a procurement course of that usually prioritizes price over all-round worth, placing extra strain on margins. Some companies go so far as having a no pitch coverage – they’ll clearly meet prospects and construct proposals however they gained’t go for staged pitches with 4+ companies all bidding.
“There are a few issues I feel companies are doing to win enterprise with out the normal pitch course of. One is specializing in customer-led development, increasing inside accounts or to web new prospects by way of referral. That is as outdated because the hills although so much less more likely to clarify your discount. I feel what’s extra believable is companies are more and more positioning themselves as solvers of enterprise issues, not merely a ‘inventive company’ or a ‘media company’, and creating merchandise which might be constructed to resolve particular enterprise challenges for shoppers and might subsequently be taken to market proactively, as would a product firm.”
UK headcounts have decreased – what does this imply although?
Curiously sufficient, whereas gross earnings rose barely, we noticed a 6.1% drop in headcount from 52.5 within the earlier monetary yr to 49.29 in the latest monetary yr. In 2023, the common headcount sat at 62. We additionally noticed in our Propolis Neighborhood Index, our real-time dashboard which surveyed over 1000 B2B organisations, that advertising and marketing leaders are spending 2% much less on folks when evaluating the 2024-25 interval to the 2023-24 interval.
Bearing that in thoughts, recruitment undoubtedly provides one other layer relating to general headcount and retention. We interviewed a number of advertising and marketing leaders on this very matter in a podcast episode in affiliation with HelloKindred (which you’ll be able to try right here). Within the dialog, they mentioned how the normal specs for recruiting have modified drastically with adaptability and a willingness to relearn on the forefront.
Roland Glass, Chief Industrial Officer, HelloKindred stated: “Some of the necessary issues that we should have a look at is the flexibility to unlearn, relearn and retool ourselves. We’re in an area of unprecedented change and transformation and at a charge of change that we’ve by no means seen earlier than…Have they got the flexibility to adapt and be a part of an atmosphere that modifications shortly?”
This notion appears to align with the info – we noticed that 34 out of 83 companies stated the recruitment marketplace for company personnel and availability of excellent candidates is both difficult or extraordinarily difficult – that’s practically 41% of companies that really feel this manner. As well as, a majority of companies stated it takes round two to 3 months to recruit the best candidate. Mix the efforts, time and the ever-changing guidelines of qualities wanted from candidates, and this does current an impediment (one which doesn’t appear to be going away anytime quickly).
A deal with retention results in extra optimistic work environments
Contemplating that, our information additionally signifies a powerful effort in the direction of a optimistic and productive working atmosphere. This could possibly be because of the truth that greater than half of companies surveyed expressed a deal with retention. For instance, some 88% of companies have taken on a versatile or hybrid working atmosphere within the final two years, which signifies a powerful finger on the heartbeat relating to what future staff may worth within the office. In truth, in keeping with a research by The World Payroll Affiliation, about 75% of candidates would flip down a job if it didn’t provide versatile or distant working environments.
To help this shift to general worker wellbeing amongst companies, we noticed that 94% of companies have centered their initiatives on crew away days and 83% have carried out psychological well being consciousness and help programmes – these had been the 2 largest initiatives companies have been focusing efforts on in an try to enhance workers retention and recruitment.
DEI and upskilling are undoubtedly a precedence
With the US seeking to doubtlessly cut back on DEI initiatives following Trump’s return to workplace, it undoubtedly may increase concern. Nonetheless, sccording to a survey, there was a 92% elevated engagement with sources that define the mandated DEI insurance policies.
And once we have a look at final yr’s figures, the UK has continued its rise in significance. 70 out of 83 companies stated they’ve some form of DEI initiative in place – this included every thing from reviewing hiring practices to cut back bias to assessing hiring practices and bringing on executive-level help. And as we all know from earlier analysis and interviews with B2B leaders, the extra numerous a crew is, the higher they’ll inevitably carry out.
Lastly, one other initiative that was prioritised was round exterior coaching – 52 out of 83 companies are specializing in upskilling their staff to coincide with the ever-changing market. In truth, in a podcast with The Assume Tank (go away hyperlink right here as soon as revealed), who gained UK Company of the Yr at our B2B Advertising and marketing Awards – the crew defined how they used creativity coaching to check out just a few AI instruments. This was to not solely assist improve their crew’s skillset however guarantee they’re maintaining with the newest know-how and tendencies.
Businesses are utilizing AI; their shoppers? They want a bit extra convincing
It wouldn’t be 2025 with out mentioning AI, proper?
We requested companies what their strategy was when it got here to utilizing AI to ship on advertising and marketing campaigns. And the consensus? Each company was utilizing AI to some capability. Round 59% stated they had been ‘Enthusiastic. We’re actively testing and trialling numerous issues, and determining the way it suits’. 29% said that they had been taking a progressive strategy and that AI was already a part of their proposition and deliverables. And the remaining 12% stated they don’t have an AI technique in place however that it was extra of a case-by-case strategy. In an ever-changing panorama, it’s good to see companies have embraced AI to a point.
We additionally requested companies to explain how their shoppers had been responding to AI and solely 18% stated shoppers had been enthusiastic and desperate to be taught extra about AI. Whereas a majority of companies stated they had been ‘open and reactive’ in addition they famous that they’re not actively pursuing AI. And 24 of the 83 companies stated shoppers leaned extra in the direction of the cautious aspect.
Maybe there must be extra training round AI in order that cautious shoppers can perceive potential AI laws and open-minded shoppers can see how AI suits into their advertising and marketing actions or campaigns.
Curiously sufficient, 59% of companies additionally famous that it has been a problem to harness AI to enhance processes or impression. And the flexibility to show its impression to shoppers can definitely be a contributing issue.
David commented: “Businesses have embraced AI. They’ve recognised that it’s going to vary the sport essentially, but additionally that it’s an emergent know-how. We don’t know what the perfect use circumstances will likely be, we’ve to determine that out by means of experiments. That sort of innovation is properly suited to companies. They’re used to shifting shortly they usually have the mindset to roll up their sleeves and get caught in. The problem they’ve is it does require funding in what’s a tricky marketplace for them, so partnerships with shoppers will play an enormous position in funding innovation and shifting the entire trade ahead.”
Conclusions: What does all of it imply?
We’re seeing a optimistic mindset with companies round development which is certainly a optimistic shift in the best route. As we talked about earlier, this yr’s information showcased 83 companies, which was 23 much less companies than the yr prior. This was almost certainly because of companies having a harder yr than ordinary, which explains why there was a reported YoY enhance in gross earnings and a YoY lower in headcount.
Whereas they’re poised for development sooner or later, they’re additionally understandably treading fastidiously as a result of strain on shoppers’ budgets, the challenges that exist with AI and a lower than profitable pitch charge.
And whereas there may be challenges, it’s clear that client-side entrepreneurs are going to be benefiting from the always evolving (to not point out gifted) company panorama.
The excellent news is that whereas headcount is down and the market hasn’t skilled an exponential development, companies are setting themselves up for fulfillment by means of recruitment, coaching and wellbeing initiatives – all of which may also help companies ship to their client-side entrepreneurs extra successfully.
What is going to 2026 have in retailer? Solely time will inform.
