According to forecasts by Statista, global advertising spend surpassed $1 trillion for the first time in 2023—and it’s projected to climb another 30% to reach $1.4 trillion by 2029. The opportunity is significant, but for marketing agency leaders—from creative and digital shops to advertising firms—the path to growth is increasingly complex. As client budgets tighten and operational costs climb, agencies must rethink how they pursue and win new business. The bidding process is no longer a routine administrative task—it has become a strategic battleground. Competing with larger players and protecting margins requires smarter ways to evaluate opportunities, price projects accurately, and align internal resources for delivery.
At the same time, rapid changes in platforms, technologies, and content trends demand more than creative instincts—they require operational agility. While smaller agencies are often better positioned to move fast and pivot quickly, agility alone isn’t enough. Sustainable growth calls for a more disciplined approach: real-time financial visibility, efficient resourcing, and smarter bid decisions supported by data and technology. The challenge ahead is clear—agencies must evolve their models to pursue the right work, deliver it profitably, and scale with intention.
The Real Cost of the Pitch
Marketing agencies are spending increasing time and resources chasing opportunities that don’t always convert or, worse, aren’t profitable in the long run. High-growth firms often stretch themselves thin, responding to a growing number of RFPs and pitches with little strategic clarity.
Many agencies still lack the operational foundation needed to make bidding both efficient and strategic. Without a strong financial core, it’s difficult to evaluate the true cost of delivery against expected margins, reuse prior bid content to accelerate submissions, or assess win probability using insights from past project performance. Compounding the issue, proposal scopes are often misaligned with available internal resources, leading to overcommitment or underutilization that ultimately erodes profitability.
Without real-time access to project profitability, capacity, and financial forecasting, agencies risk overcommitting, underpricing, and walking into engagements that drain rather than drive growth.
Financial Pressures Compounding the Bidding Challenge
Layered on top of bid complexity are broader financial and operational pressures. Many agencies face cash flow volatility tied to seasonal work, slow client payments, and dependency on a few anchor accounts. Operational costs—especially for talent, tools, and tech—are rising, while client expectations for speed and value continue to grow. And leaner teams are often expected to deliver more without additional support. These dynamics make winning the wrong work more damaging than ever. Agencies must pursue the right opportunities—priced properly, resourced strategically, and structured for profitable delivery.
Smarter Utilization of Staff
Delivering on a winning bid takes more than strategy—it takes the right team, ready at the right time. That’s why smarter resourcing is becoming a competitive differentiator. Agencies that invest in cross-training, flexible staffing models, and accurate demand forecasting can match talent to pipeline with far greater precision. This not only protects delivery quality and employee wellbeing, but also ensures the agency can confidently bid on work without overextending or underutilizing internal capacity. A well-aligned talent strategy isn’t separate from the bid process—it’s what makes successful delivery possible.
Diversifying Revenue, Deepening Relationships
As agencies look to reduce financial risk and improve predictability, diversifying revenue models becomes an important lever. Retainers, tiered subscription packages, and bundled service offerings provide more stable income and reduce the pressure to chase every project. These models also create opportunities for deeper client relationships and upsell potential—extending value beyond a single campaign.
However, predictable revenue still requires ongoing retention. To minimize churn, agencies must deliver high-touch, personalized service and use performance transparency to reinforce value. Done right, diversified revenue can provide the financial stability needed to be more selective and strategic in bidding—focusing on work that’s both winnable and worthwhile.
The Way Forward for Agencies: Financial Resilience
Making all of this work—smarter bidding, agile staffing, diversified revenue—requires a scalable operational foundation. Agencies need more than disconnected tools and spreadsheets. Integrated core business applications like SAP Business Suite bring together bid management, financial forecasting, talent allocation, and project execution to integrate and optimize various functions across the business —powered by AI and real-time insights. Agencies can create bids faster and more accurately by leveraging historical data and AI-generated recommendations. They can improve delivery through intelligent staffing and real-time project visibility, while monitoring margins continuously from proposal to final invoice.
These capabilities also make it easier to spot risks and opportunities early, allowing teams to adjust course before profitability is impacted. Importantly, integrated core business applications enable agencies to support new delivery models that align with evolving client expectations. Whether you’re managing multi-platform campaigns or delivering high-volume creative work, your ability to scale sustainably depends on how effectively you align your bid strategy with operational execution.
In a $1.4 trillion advertising economy, the work is out there—but only the most adaptive, data-driven, and strategically focused agencies will consistently win the right work and scale successfully. To learn more about the opportunities facing project-based agencies, please download the whitepaper below.
