Marketing & Advertising Trends 2024
Navigate through the current trends and challenges faced by agencies with our monthly highlighted chart from the COR Report. Discover an exclusive analysis of critical insights and industry benchmarks each month.
Do you know exactly how many billable and non-billable hours your team has?
42% of agencies are unaware of the billable and non-billable hours available to their team.
It’s important to understand that in the world of creative agencies, the unit of sale is hours.
A lack of visibility indicates an opportunity for improvement in time management and the possibility of converting internal hours into billable hours. In this industry, projects need these hours to be carried forward by the talents, and the quote should correspond to the amount of time needed to deliver them.
The key for projects to be profitable is for agencies to sell all their available hours at the best possible price.
A considerable margin (33.2%) does not have this visibility on the hours dedicated to clients and the hours dedicated to internal matters, which can have implications on profitability and resource management.
It is important to identify how much time is allocated to the client and how much to internal matters of the agency. These can be training, meetings, or training sessions that are not billed to clients.
The goal is to have more hours available to sell with the same number of collaborators on the team.
We must bear in mind that, of the total time of a person, approximately 25% corresponds to internal time that is not billed to clients, which is equivalent to approximately one out of every four weeks. It is essential to address these indicators to optimize an agency’s profitability.
“Small improvements in internal efficiency can have a significant impact on your financial results.”
