Many agencies are feeling the C19 squeeze and cashflow runways are running out. Paul Winterflood from Moore Kingston Smith joins us to explain the critical KPIs that all agencies should be shooting for and where to financial management. These are magic numbers for marketing agencies.
- Staff costs as a percentage of Gross Income should be no more than 55%. 60% is the non-stretch target
- Gross income per head should equal £120,000 or more. The non-stretch target is £100,000
- Overhead cover should equal three months’ worth of overheads in net current assets as a minimum
- Operating profit should be 20% or more
- Revenue growth should exceed 10% per annum in normal times
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Dom has spent nearly thirty years as a marketer. He started his marketing career in creative communications agencies before starting a business which he built from the ground up, exiting in 2009. He then consulted to tech and service companies before putting Selbey Anderson on the launch pad. Today, he leads development of the group strategy, M&A and performance.