However, despite the positive digital outlook the report also points to client satisfaction pitfalls. Almost 70% of agency respondents, including 72% of independents, agree that the client/agency relationship is improving. Less positive was the response when clients were asked whether they would recommend their digital agency to friends or peers. On a scale of 1-10 (with ten being very likely and one not at all likely) the average came in at 4.3.

More and more agencies are starting to demonstrate expertise and industry leadership is by creating an Innovation Lab or an incubator. SoDA’s research shows that such moves are a solid investment that pays dividends over time. Ten percent of agencies who had an incubator for a year or less saw significantly increased revenues as a result, compared to 20% who had one for three years or more. In terms of new business, agencies with such tools reap the benefits much faster, with 33% of agencies winning new clients after year one, compared to 70% after year three.

“Clients in 2015 feel tremendous pressure to understand and leverage emerging technology trends in order to innovate their operations as well as the products and services they offer to their customers. In fact, expertise in emerging trends is now the number one skill clients most value in their agency partners, up from a distant third in 2014,” said Chris Buettner, SoDA executive director and managing editor of The SoDA Report. “Agencies and production companies – particularly those that invested early in innovation labs and product incubators – are reaping the benefit of clients’ acute need for emerging tech expertise,” he adds.

The SoDA Report is one of the world’s most widely-read publications in the digital marketing industry, with more than 330,000 views and downloads in 2014. The research surveyed 680 respondents equally divided between digital agencies and their clients.

For more insights, original articles, exclusive interviews, case studies and more, check out the full report at www.sodareport.com.