We’ve been chatting with agencies about their freelance needs, and something caught us off guard. Large agencies seem to lean on freelancers just as much as the small ones. You’d think with their scale, they’d have in-house teams covering all bases. But nope, freelancers are still their go-to.
So, why can’t big agencies shake off their need for freelancers? Here’s a rundown of the industry forces at play:
- The Great Fragmentation
Marketing, advertising, and digital are fragmenting like crazy. New channels, new tech, new skills, new projects—it’s a never-ending cycle. This means agencies need a wider range of experts than they can justify hiring full-time. Large agencies, despite their size, aren’t immune to this. They’re offering more services to stay competitive, but most revenue still comes from core roles like account service, creative, and production. For everything else, they turn to freelancers.
- The Cyclical Rollercoaster
Agency revenue is a rollercoaster ride with peaks and troughs throughout the year. Business ramps up in Q1, goes full throttle in Q2 and Q3, and Q4 is a wild card that drops off at Christmas. Agencies plan their staffing around these cycles, using freelancers to handle the busy periods. This pattern holds true for agencies of all sizes.
- Tighter Budgets, Leaner Teams
Retainers are becoming rare, and project budgets are getting tighter. Brands are spreading their budgets across more channels, forcing agencies to cut staff costs and stay nimble. Enter freelancers, the flexible, cost-effective solution.
- Internal Dynamics
Big agencies are complex beasts. It’s easier to sneak freelancers into projects and departments. But recently, big holding companies are cracking down on this. Efficient freelance management is becoming a must, ensuring freelancers are either billable or a strategic investment. This prevents full-timers from sitting idle while freelancers handle the workload elsewhere.
What’s Next for Agencies?
If these industry trends keep pushing agency staffing needs, freelance demand will keep rising. Freelancers will become even more crucial, and agencies will need to find competitive ways to attract and manage top talent.
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