Ignore the 99% at Your Peril

For years, the UK’s advertising and marketing industry has operated without a clear picture of its true size and impact.

The focus has always been on the big network agencies—the ones with the loudest voices, the deepest pockets, and the tightest grip on industry influence.

But new research from Agency by Agency exposes the truth: independent agencies are the industry.

According to the most comprehensive data ever compiled on the sector, 99% of agencies are independent. They employ 88% of the workforce, generate 76% of total turnover, and contribute 87% of the industry’s economic value.

The analysis reveals that there are 25,495 agencies operating in UK marketing services. Together, they employ 265,000 people with a total turnover of £34.9bn.

So why is the industry’s power and recognition still concentrated in the hands of an elite few?

The ‘few’ vs. the ‘many’

Recent headlines about the proposed Omnicom takeover of IPG were full of hyperbole about 'reshaping ', 'shaking up', and sparking a 'revolution' within our industry.

While this would make Omnicom by far the world’s biggest holdco, we’re talking about revenue of £20bn - a little over of combined indie turnover in the UK alone - compared to £14bn for WPP and £12bn for Publicis Groupe.

And yet, if you were to judge the industry by coverage in trade media, industry reports from ISBA, or lobbying efforts from the Advertising Association, you’d think the entire sector was controlled by WPP, Omnicom, Publicis, IPG, and a handful of others. Their executives dominate discussions on everything from industry challenges to government policies.

But here’s the reality: they don’t represent the industry. Not even close.

(Public) School Report

Take the agency bible, Campaign, which every year runs a School Report assessing agency performance (this was a big part of my own journalistic career for several years!)

This year’s offering comprises 92 agencies: more than a third of which belong to the Big Four holdcos (or almost half if you include Dentsu, another publicly traded company and Havas, which is soon to be listed again by Vivendi).

To state the obvious: 92 is a lot less than 25,495.

Given how many agencies from public companies feature in this report, maybe it’s time to rebrand this exercise as the Public Schools Report?

This matters. What gets missed when you ignore the 99% is that independent agencies are the ones driving actual innovation, employing the vast majority of talent, and contributing the bulk of the sector’s economic value.

This carries unintended consequences:

• Industry trade bodies tend to seek input from holding companies when setting standards and policies

• Awards are still structured in ways that favour agencies with massive PR budgets

• Executive roles at holdco agency groups attract more PR and marketing opportunities at trade shows and conferences (even though, most of the time, they have relatively little authority or insight due to the way holdcos have become centralised and productised).

This isn’t just unfair - it’s bad for business.

The economic reality vs industry perception

The Agency by Agency research doesn’t just highlight the scale of independent agencies - it also reveals the diversity and dynamism of the sector.

• 60% of UK agencies are micro-agencies (one-three employees), proving that the industry is powered by small, nimble teams, not sprawling corporate structures.

• Specialised agency segments like Amazon marketplace services and pro-social campaigns are among the fastest - growing areas - but these aren’t the kinds of agencies getting a seat at the table in industry discussions.

• Female leadership is strongest in independent PR and communications agencies, challenging the perception that gender diversity is an issue only big agencies are addressing.

This data should be a wake-up call.

The industry isn’t just what the holding companies ay it is. It’s something far bigger, more dynamic, and more independent.

How we fix this

Trade Bodies Must Expand Representation

• ISBA, the Ad Association, and others need to actively include independent agencies in their leadership discussions.

• Policies should be shaped by the majority, not the minority.

Awards Need a Structural Rethink

• Create categories that level the playing field for independents, not just reward agencies with the biggest budgets.

• Recognise excellence beyond sheer media spend.

Media Must Diversify Its Coverage

• Publications need to stop recycling the same network agency execs for industry commentary.

• More profiles, case studies, and thought leadership from independent agencies.

Policy Decisions Need Broader Input

• The government and regulatory bodies shouldn’t just consult holding companies on industry matters.

• Independents, which represent the true economic backbone, need a seat at the table.

The bottom line

The Agency by Agency report proves what independent agencies have always known: they are the industry’s beating heart.

But power, influence, and recognition haven’t caught up with reality.

The trade bodies, the media, and the policymakers need to stop pretending that the few speak for the many. They don’t.

And if the industry wants to remain competitive, it’s time to start listening to the real majority.