✅ How independent agencies define the UK's creative economy
The UK independent agency sector contributes £26.7 billion to the economy. It’s time we gave it the recognition it deserves.
The Agency by Agency IndieNation report maps the UK’s 25,000-strong independent agency sector. We’ve been fortunate to get an early sight of the report. It tells the story of a vibrant, decentralised creative economy that’s bigger, faster-growing and more economically important than many realise.
It’s time for clients, the media, industry and the government to pay attention.
Independent agencies are creative, communications, marketing or media agencies not owned or controlled by large holding companies. That means they operate outside of the “Big Seven” global networks: WPP, Omnicom, Publicis Groupe, Interpublic Group (IPG), Dentsu, Stagwell and Vivendi.
According to the IndieNation report, independent agencies now represent 99% of all UK agencies.
Let that sink in.
Together, these 25,320 agencies employ 233,000 people, generate £26.7 billion in turnover and contribute £17.8 billion in Gross Value Added (GVA) to the UK economy. They account for nearly 9 in 10 jobs and 87% of the sector’s total economic output.
Yet, for all their scale and contribution, independents remain under-recognised in national policy, investment conversations and in how the wider industry talks about itself.
Agency by Agency is a UK-based research and insight firm focused on mapping and understanding the creative, communications, marketing and media agency ecosystem. It specialises in data-led intelligence about the agency landscape.
Small but mighty: Challenging assumptions about scale
Size is one of the most misunderstood aspects of this sector. More than 85% of independent agencies have 10 or fewer employees and a similar proportion report annual turnover below £500k. On the surface, it’s a fragmented landscape of micro-businesses.
But look deeper and a different picture emerges. These smaller firms are disproportionately active in high-value, specialist niches. They’re nimble, connected and increasingly collaborative. They tap freelancer ecosystems, fractional roles and technology platforms to scale without the bloat.
Meanwhile, there’s a clear performance uplift as agencies grow. The data shows that GVA-per-head, turnover-per-head and growth rates all improve significantly beyond the 50-employee or £3m turnover mark. The message is clear: micro-agencies may dominate by number, but helping them scale sustainably unlocks far greater economic and creative return.
GVA matters more than revenue
A key lens in the report is Gross Value Added (GVA) - a measure of how much real economic value an organisation contributes, once you subtract the cost of its inputs.
It’s a more accurate reflection of productivity than revenue alone and an important benchmark for comparing different agency models or sectors. In the IndieNation data, the average GVA-per-head across all independent agencies is £76,316.
Subsector intelligence: Where value and growth lies
Mapping 28 agency subsectors reveals some telling contrasts:
Brand strategy tops the GVA-per-head rankings (£106k), showing the high intellectual value of this specialism.
Digital transformation leads to growth (23.4%), followed by influencer, marketplace, and data/analytics subsectors.
Meanwhile, public relations and communications sit at the lower end of both productivity and growth. This should be a prompt for reflection and retooling.
Subsector data gives founders and investors a sharper lens for positioning, talent planning and investment. In a fragmented market, strategy beats scale alone.
The geography of growth: Beyond the London bubble
Yes, London still dominates by volume - almost half of all independent agencies are based in the capital. But the growth hotspots tell a different story.
The North West (14.6%), West Midlands (14.4%), Scotland (12.5%) and Wales (10.7%) are all growing faster than London.
Regional talent clusters are emerging in specialisms such as data, conversion and influencer marketing.
This decentralisation of agency growth suggests a more resilient, distributed model - one that reflects wider shifts in remote working, cost pressures and lifestyle trends. It also means national narratives about the creative economy need a regional rethink.
Investment and inclusion
The vast majority of innovation and investment funding now flows to independent agencies. But that capital isn’t reaching all corners of the map or all parts of the sector equally.
Subsectors such as digital transformation, influencer and data analytics are attracting the lion’s share. Others - including some of the most culturally influential - are underserved. Public relations again risks being left behind unless it can better articulate its economic and strategic value.
The report also surfaces a quieter but no less urgent issue: while the proportion of women-led and women-founded agencies is broadly aligned with the wider industry, women hold fewer directorships in independent agencies. In a sector that prides itself on creativity and modernity, the leadership gap remains a drag on equity and progress.
Implications for practice
The IndieNation report is more than a map. It’s a mirror - and an invitation.
For public relations and marketing leaders, it’s a call to reframe how we think about value, growth and relevance:
Measure more meaningfully - GVA and turnover-per-head tell us far more than vanity metrics.
Support the scalers - Most agencies are small, but their impact can be big with the right infrastructure and networks.
Invest in regions and niches - That’s where the new growth curve is forming.
Fix the leadership pipeline - Gender equity and governance maturity still lag behind the sector’s ambition.
Tell a bigger story - Independent agencies aren’t the margins of our industry. They’re its muscle.
Reference
Agency by Agency (2025). IndieNation: Uncovering the UK independent agency landscape. Available at: https://agencybyagency.com/report/indienation/.
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