Episode 9: Agency KPIs – magic numbers for marketing agencies

Dom Hawes | August 21, 2020


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.


Key Takeaways

  1. Staff costs as a percentage of Gross Income should be no more than 55%. 60% is the non-stretch target
  2. Gross income per head should equal £120,000 or more. The non-stretch target is £100,000
  3. Overhead cover should equal three months’ worth of overheads in net current assets as a minimum
  4. Operating profit should be 20% or more
  5. Revenue growth should exceed 10% per annum in normal times

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Dom Hawes

Dom has spent nearly thirty years as a marketer starting his career in creative communications agencies before starting a business which he built it from the ground up and exited 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.