for Agencies

Digital Agencies in 2020:

A Glimpse into the Future
Table of Contents

I Intro
What Are the Biggest Challenges?

01 Competition
Local vs. Global
Client...or Competitor?

02 Identity Crisis
What’s Your Type?
A New Role Emerges
Jack of All Trades...or Master of One
World Wide Web vs. Main Street

03 Opportunities for Growth

Offering Additional Marketing Services
Offering Higher-End Design with a Price Tag

04 Consumer Trends
Websites and SEO on the Rise
Diminishing Demand for Email Marketing and Mobile Apps

05 Emergence of New Technology

Zero Code Web Development
Artificial Intelligence
Virtual Reality, Augmented Reality and IoT
Voice Activated Systems

06 Conclusion

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Intro

The digital agency industry is relatively

new and ever-evolving. The increasing
rate of change in all things online
demands that we adapt to new
technology and pioneer new avenues
of growth and innovation.

This environment of rapid change brings

both serious challenges and exciting
new opportunities to those of us who
wish to stay ahead of the curve—which
is where you come in.

Our intent is to combine diverse voices

in the space in order to identify the most
significant challenges of the near future
and discuss actions to best navigate
them.

Read this eBook to gain insights on:

Increasing competition
Emerging technology
Redefining brand identity
Leveraging consumer trends for
business focus and growth
And more

Ready to dive in? Read on!

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Discover the Biggest
Upcoming Challenges
Our first goal was to identify the upcoming challenges with the biggest
potential impact, according to active members of the industry.

Biggest Upcoming
25%
Challenge for Agencies

17%
50%

8%
Adapting to New
Technology

Hiring & Retaining the

Right People

Increasing Regulation
& Stricter Privacy
Standards
0%
Increasing
Competition

Lower Demand
for Websites

According to the Wix Agency Breakfast forum on October 18th, 2018, NYC

Increasing competition led, followed by the need to adapt to new technology.

Interestingly, no agency predicted that lower demand for websites would be
a challenge. All of the agencies polled provide website creation as a core
service and do not foresee this diminishing.

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01 Competition
The digital agency space has always
been highly competitive, fueled by
seemingly infinite demand for digital
services. With everything—from needs
to tools—changing rapidly, it becomes
even more challenging to identify
competitive threats in the market.

Traditionally, you could look at your

local market to see who offers similar
services. In today’s (and tomorrow’s)
market, competition can come from
surprising places.

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Local to Global…
And Back Again
The first wave of agencies were built on There are obvious disadvantages to
a local client base and grew by word of receiving a core service remotely, and
mouth. The landscape was primarily predictably, global marketplaces for
based on local businesses in need digital services already show a bias
of an online presence and ancillary towards lower-end projects, but the fog
digital services. The emergence of around the impact of this new landscape
digital marketplaces has flattened the hasn’t fully lifted.
landscape, essentially placing agencies
in a global arena. We understand the pull towards the
global arena, mainly due to low barriers
Suddenly, it didn’t matter whether you of entry and seemingly easy marketing
were based in Missouri or Kashmir. demands, but using these marketplaces
Competitive prices and a simplistic as a primary source for business brings
star-based reputation became the with it a shaky business foundation and
de-facto criteria for being hired. high-risk dependencies on uncontrollable
factors.
Without warning, agencies were
competing with international entities We predict that the appeal of globally-
offering similar-sounding services for offered services will continue to diminish,
half the price—from the other side of the precipitating a resurgence of the “local
world. agency”.

Quick Tips for a Dependable Client

Base and Premium Margins

Focus on your immediate surroundings

Foster relationships with local businesses to boost trust and credibility

Make getting referrals a process

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Client or Competitor?
Just a decade ago, clients fully relied on professionals to
dream, design and develop their online presence.

As technology evolves, providing But we believe the confusion around

better, more accessible tools to a wider “why pay for something I can do myself?”
audience, many clients are choosing to is transitory. We can learn from more
do it themselves, using DIY platforms to established industries that the distinction
create and manage their online presence. between DIY and paid services reveals
These platforms are gaining popularity, itself naturally and organically.
eliciting excitement and conversation
around the newfound ability to do it In the same way that it is now very
oneself. clear to us whether we should fix a
leak ourselves, or call a professional,
This creates a new challenge for or whether we should do our own
agencies: To convey how professional taxes or hire an accountant, so will we
expertise contributes to the process, learn to discern between digital needs
either by crafting a better product we can take care of ourselves, and
or answering business needs more services for which we’d be better off
effectively. calling the professionals.

“
A noteable and consistent challenge we have is proving our
unique value not only compared to our competitors, but also
over the client doing it themselves.
Anthony Virey, Any Design Agency

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02 Identity Crisis
In an exceedingly competitive market,
agencies are pushed to think more
strategically about market positioning and
developing a brand identity that is conducive
to fulfilling specific business goals.

Your agency’s brand identity will impact a

variety of factors in your marketing funnel
such as attracting potential clients, facilitating
a broader service offering and supporting
higher profit margins. We predict that over the
next few years, agencies will have to better
define their role in the client’s journey towards
success, choosing between a generalist or
specialist approach and deciding whether to
position themselves as global or local.

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What’s Your Type?

As more businesses shift their

core marketing activities online, Web Developers focus
on the infrastructure of a
digital agencies are challenged client’s online presence.
with determining the role they offer
to play in their client’s journey.

There’s a growing variety of digital

services in demand and as a result which Marketers lead with how
services are offered by agencies; this all they can help with organic
contributes to the rapid fragmentation of traffic or paid advertising.
what used to be a homogenous industry.
While we can’t predict which services will
become dominant in the near future, we
encourage you to familiarize yourself with
all possibilities in order to more accurately
Storytellers help businesses
select and promote the role you wish to craft the right brand identity or
play in the market. content campaign.

Designers focus on the

user experience.

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 A New Role Emerges

Digital agencies often find themselves

on the defensive, navigating tough
conversations with clients around the
value of strategic thought and planning.
With the commoditization of some digital
products, the just-do-it mentality often
diminishes the perceived value of deeper
insights that could make a big difference
in impact and performance.

We recommend taking a more

proactive approach. Switch from
defending the merit of strategic
thought to offering those same
insights as educational, independently
valuable resources. Playing the role
of educator can elevate your core
offering and strengthen your position
in the market, while allowing you to
generate additional revenue from
educational sessions and material.

“
We find ourselves having to act as educators, rather than
designers or project managers. We need to position the
value of what we’re doing as value in and of itself.
Nicole Krosnowski, SEMGeeks

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Jack of All Trades…
Or Master of One
Still on the topic of choosing a role to play,
agencies have another tough decision to make.

This one relates to the age-old dilemma

of whether to establish an identity that
revolves around a single role (e.g. SEO
services or branding) or around a holistic
approach that encompasses multiple
services.

The advantages of being a specialist

are clear; if a client has a specific
need, they’re more likely to choose
a professional who’s renowned for
addressing that need successfully.

That said, more clients are requiring an

array of services as part of a launch,
revamp or new campaign, and would
benefit from a one-stop-shop service
provider that can offer a comprehensive
and cohesive solution. There’s no clear
guidance here as both options work
depending on the circumstance, but it’s
important for your agency to thoughtfully
address this aspect of your identity.

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 World Wide Web
vs. Main Street

The global/local dilemma comes back

into play when contemplating an agency’s
brand identity and market positioning.
Defining oneself as global-facing used to
lend credibility and prestige, opening the
door to international leads and projects.
Now, based on our assessment of the
global arena and digital marketplaces, we
believe that the prestige of internationality
is waning, eclipsed by the enduring trend
of going local.

Crafting a more local identity may

be especially beneficial in the
United States where Americans are
once again seeking out goods and
businesses that are made in the US.
This nostalgia-fueled trend can benefit
agencies who choose to craft their
identity as the local digital agency
that people know and trust.

“
Many of our clients have been burned in the past by
international service providers and now feel safe in the hands
of a local agency they can trust.
Shanna DeCola and Kim Cunningham, Skigital

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03 Opportunities
for Growth
We predict that the biggest opportunities
for growth will come from offering clients
additional marketing services, presenting
a higher quality product and refocusing
on the local market.

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Opportunities for Growth

Biggest Growth
Opportunity for Agencies
49%
34%

Offering Additional
Marketing Services

0% 17%
Offering Higher-End
Design (with Price
Increase)

Expanding to the
Global Market

Refocusing on the
Local Market

According to the Wix Agency Breakfast forum on October 18th, 2018, NYC

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Offering Additional
Marketing Services

Initial conversations with prospective

clients often revolve around one
specific need, whether it’s website
development or a marketing service.

However, we see growing adoption of

a more integrated approach, where
clients want their website, media and
marketing channels to be interconnected,
consistently on-brand and instantly
recognizable. Agencies can use modern
platforms that offer a suite of integrated
tools, making it significantly easier to
provide the full package.

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Offering Higher-End
Design with a Price Tag

Digital design is no longer just about

how a product looks or feels.

It’s about creating a user experience that

answers specific business challenges.

There’s a growing trend of agencies positioning

themselves as offering business solutions
rather than digital services. They lead with
answering a goal for the client as opposed to
delivering a product that the client requests.
The conversation shifts to the impact a digital
agency has, allowing for higher price points
and consequently, higher profit margins.

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04 Consumer
Trends
Stay on top of trends so you can offer
services that are emotionally appealing,
rather than solely a business justification.

The ideal combination? Offer both what a

client wants—and needs.

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Consumer Trends

Predicting Consumer Trends

Websites

Apps

Social Media

Email Marketing

SEO

According to the Wix Agency Breakfast forum on October 18th, 2018, NYC

Read on to see our analysis of:

Websites Social Media

Apps SEO

Email Marketing

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 Websites and
SEO on the Rise

A significant amount of agencies

provide website creation as a core
service, firm in their belief that
consumers will continue to want
websites. As more businesses
transition online and become more
mindful of their online presence,
agencies find themselves explaining
the value of a website less and less.
The same goes for SEO.

“
Your website is the only part of the internet that you totally
control. It’s the one place where you can promote your
message, your way.
- Michael Pilla, Pilla CM

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Social Media

Social media is maturing as a monetized

platform. What used to be a relatively
affordable communication channel for
businesses and users has essentially
become yet another advertising
platform. As algorithms constantly and
unpredictably change, strategies that
companies used to employ become no
longer viable. The impact of traditional
social media platforms declines, causing
business owners to be less willing to
invest their time, money or effort.

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Diminishing
Demand for…

Email Marketing
The popularity of email marketing is
subsiding, in direct correlation to its
potential impact. Despite being one of
the most prevalent channels of the past
decade, very few businesses derive
enough value from it to justify the cost
in time and resources. Decreasing open
rates, increasingly sophisticated spam
filters and stricter regulation has led email
marketing to be much less effective. Yes,
it can be a great avenue for building
relationships for specific industries (e.g.
commerce, restaurants) and highly-
targeted audiences, but the time of it as
a mass tool is over.

Apps
There was a time when every business
wanted to build their own app. Just as
quickly, business owners realized it’s
challenging—if not impossible, to earn
real estate on their customer’s phones.
As mobile responsiveness becomes
increasingly important, the trend shifts
back to aggregated apps and directories.

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05 Emergence
of New
Technology
The rate of new technology emerging is
increasing, impacting every aspect of
the digital agency space, from the tools
you use to the products you deliver. This
makes it even more difficult to predict which
technology is only a fad and which will
disrupt the way people interact online or
build products.

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Emergence of
New Technology

The #1 Technology Trend That Will Dramatically

Change the Way Agencies Do Business

21% 36%
14%

21%

Artificial
Intelligence

Virtual & Augmented

Reality

8%
Zero-Code Web
Development

Voice Activated
Systems

Internet of
Things
According to the Wix Agency Breakfast forum on October 18th, 2018, NYC

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 Zero Code Web
Development

Software is evolving in a way that allows

the creation of more complex, robust
experiences with less resources. Complex
web infrastructure like databases,
dynamic pages and custom interactions
used to require highly specialized skills;
now it’s becoming more accessible.
More agencies are capitalizing on this
opportunity to simplify their process
of creating digital products. Now they
can hire people who do more, rather
than hiring a wide variety of specialists.
Businesses that take advantage of a
more inclusive environment will have an
edge over more conservative agencies
that spend time coding from scratch.

“
The fact that we can develop more complex websites without
coding means we can do everything in house and turn things
around a lot quicker.
Shanna DeCola and Kim Cunningham, Skigital

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Artificial
Intelligence

Artificial intelligence is invading our

everyday lives and has recently made
its way into the web design and web
development space. Currently still an
assistive technology, AI is not yet poised
to replace web designers or humans.
Instead, if embraced, it may free up a
designer’s time and be used to increase
efficiency. We predict that in the next few
years, AI will become a better assistant
for designers and developers, and in
the years that follow will start replacing
some aspects of what they do.

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Virtual Reality,
Augmented Reality
and IoT

The current focus of web design is on

mobile, desktop and tablets. VR, AR
and the Internet of Things (IoT) are all
too early in their journey to become
core components of what digital
agencies do but we do predict them
occasionally being an extension of the
website. For example, agencies may be
asked to create experiences for store
windows with AR. It’s also important to
consider the impact of the IoT; there
are predictions that the number of
connected devices will reach 20.6 billion
in the next couple of years. Some specific
experiences will have to be designed
with the IoT in mind. For example, an
agency designing a website for recipes
may also need to design an experience
for the refrigerator.

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Voice Activated
Systems

A voice activated system is another type

of interface that may be an extension
or replacement of the website. In the
past few years, chat and text-based
interactions have become one of the
most popular interfaces.

We predict that the huge amount of effort

and money put into chat will naturally
transition to voice activated interfaces,
putting voice at the forefront of business-
to-user communication. As a result,
SEO will drastically change. Right now,
businesses can benefit from being on
the first or second page. With voice, if
a user isn’t the first result, they may not
get found at all.

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Conclusion

There are a few ways to make sure

your agency can navigate upcoming
challenges and find continued growth
and success in the future. Firstly, research
shows that despite the pull of the global
arena, many clients want to find an agency
near them that they can trust. This means
that refocusing on the local market is an
increasingly good idea. Secondly, with
DIY site building enthusiasts on the rise,
establishing the need for expert input
is really important—as well as clearly
defining your offering. Whether you
provide specialist services or you’re a
one-stop-shop, making the distinction is
crucial. Of all the emerging technology,
zero code web development seems set
to have the biggest potential impact on
the industry, with agencies finding they
can free up valuable time and resources
when they don’t have to code everything
from scratch.

Here’s to staying ahead of the curve

during an exciting time for the industry!

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 for Agencies

Today, Wix.com is chosen by over

140 million users and thousands of
professional agencies worldwide.

Wix.com is the world’s best web design

and development platform for your
agency, giving you all the tools you need
to create professional websites at scale.

For more information, visit www.wix.com

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