As we turn to the second half of 2023, it’s a great time to evaluate and take stock of the trends that have shaped the year to date and the opportunities ahead.
It has been a dynamic year for advertisers. When 2023 began, the industry confronted immense uncertainty and unsettling forecasts of advertising spend decline, ad budget growth slowing, and warnings that the digital ad market is in a slump. In navigating inflation and uncertainty, many top companies cut staff and decreased marketing investment.
However, as the year has progressed, advertisers across Fluency’s portfolio experienced a strong Q1 and sustained performance. An examination of ad spend and performance trends reveals that spend is consistently going up across Fluency’s user base, and partners using our platform at scale are growing.
In fact, in the key Q1 time period – against the backdrop of negative forecasts, uncertainty and spending declines – agencies that run Fluency increased their spend through our platform by 7% QoQ on average. Notably, this rate of growth includes the December-January “seasonal dip” that is common across the digital ad landscape.
The positive trend continued through Q2 with an even steeper increase as agencies ramped up spend through our platform by 26% QoQ.
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(Y axis reflects total percentage account growth across Fluency platform)
Steady spend increases leading to consistent account growth
Importantly, the overall increase in spend is consistent across our portfolio, including at the individual account level: an analysis of account growth over time shows that, organizations running Fluency’s RPA-powered automation platform are experiencing 350% overall account growth. This overall trendline also continued into Q2, suggesting sustained growth as we move into the second half.
Automation and process efficiency powering convention-bucking performance
So, what explains the contrast between the pessimistic conventional wisdom and macro trends and the realities experienced by Fluency partners? In my experience, much of the difference lies in the way agencies are approaching their processes. In a climate in which advertisers are facing more pressure to drive results, and agencies continue to aspire toward white glove service, many agencies remain saddled with a “work glove” approach. Their teams are often bogged down in drudge work – think account launches, budget pacing, and other repeatable tasks – that drain resources away from strategy and scalability. By automating the “work glove” tasks that consume time and resources, agency teams can create more time for meaningful strategy conversations with the end advertiser, that can frequently unlock more budget for the agencies. The result helps them transform economic uncertainty into competitive opportunity. That’s the benefit of automation: when you focus on the strategic, visionary work, happier, more profitable customers result.
Looking ahead
Our partners’ ability to deliver sustained growth through the first half gives me great confidence as we look to the rest of 2023 and beyond. While macro-level forecasts remain uncertain, digital advertising forecasts continue to indicate growth. This, combined with the consistent success among advertisers who embrace automation and process efficiencies, points toward a future of immense potential.
