Each month, we’re gathering information from ecommerce agencies: their results, thoughts, and predictions, and then sharing these insights in an aggregated and anonymous industry report.

Whether you're an agency owner or just looking for more information, this report can help you get a better understanding of the state of ecommerce agencies.

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Holiday surge: Marketing budgets reflect seasonal optimism

In December we noticed a shift towards increased marketing budgets, with a noticeable rise in ratings from 7 to 10. This aligns with the seasonal trends of brands gearing up for Christmas and capitalizing on post-BFCM momentum. Compared to the yearly average, this month shows a lot more activity, likely reflecting a push to maximize holiday sales and end-of-year campaigns. 

The uptick highlights the importance of leveraging this period to solidify customer acquisition and retention strategies. Here’s what some of our experts commented:

"Black Friday marked a peak in new customer acquisition for the brands we support. Moving forward, our priority is to convert these new customers into loyal, repeat buyers through cost-effective retention strategies like email marketing.

Dennis Kroon, Founder at Ecommerce Accelerator

At Medito, December is generally a busy month for merchants due to key ecommerce events like BFCM and Christmas. Typically, this is not a time when we see many new projects starting; instead, it’s a period of consolidating existing work and focusing on planning new features and investments for the upcoming year.

Olivier Lambret,  Founder at Medito Digital

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Investment in ecommerce apps: A tech-driven year-end push

This month we also noticed an upward trend in budget allocations for ecommerce apps, with ratings skewed toward 6 to 9. Brands appear to recognize the critical role of apps in optimizing their operations and enhancing customer experience not only during the busiest shopping season, but also as we head towards the new year.

As I recently shared on LinkedIn, many of the merchants I have spoken with during the month of December 2024, were using these slower days to really dig into their software costs. Not surprisingly, a lot of them are discovering they’ve been paying way too much for apps—at least referral platforms, which is what we end up talking about—and wondering, “Why am I paying so much?” and, in way too many cases, “Do I really need to be locked into a year(s)-long contract?”

"In today's rapidly changing landscape, it is imperative to understand market trends and customer behaviors. By recognizing shifts in budgets and investment priorities, we can uncover both challenges and opportunities that drive our success."

Ahmed Elghobashy, Founder & CEO of Simplix Innovations

“We always advise our In Social clients to leave their tech stack as is during peak holiday shopping, but to review it with us in the new year. Unless an app has totally malfunctioned or has been deprecated, we recommend avoiding a swap or adding new technology along with our code freezes to reduce site issues during peak site traffic. That’s not to say the budget wasn’t there for apps in December, but it was more us telling our clients to wait to invest until we have the time and opportunity to do it properly. We’re now in planning mode to implement new apps for reviews, RFM loyalty, quizzing, and lead capture for a number of our clients to set them on the right path for 2025.”

Jess Grossman, Founder & CEO, In Social

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In-house vs. outsourcing marketing: Brands navigate hybrid strategies

This month’s survey is interesting because it’s by far the month in which we’re noticing the most notable polarization in price sensitivity. While some ecommerce brands seem to remain cost-conscious (ratings 1-3), others are increasingly willing to invest in premium services (ratings 8-10). This dichotomy suggests a shift in priorities, where certain brands prioritize quality and results over cost, especially during high-stakes periods like Q4. The hybrid approach of balancing affordability and effectiveness seems to be gaining traction.

“Agencies are stuck in the past—bloated fees, endless meetings, and no skin in the game. Brands don’t need outsiders; they need insiders who think, act, and work like their own team. That’s where the hybrid incubator model wins: fully embedded, fully accountable, and laser-focused on growth. No middlemen, just results.”

Ash Ome, Founder/CEO at MOTIF

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Revenue projections: A cautious path to growth

The likelihood of ecommerce brands bringing marketing in-house remains centered around the middle (ratings 4-6), with a slight decrease in higher ratings compared to the yearly average. This suggests a cautious approach as brands weigh the benefits of retaining agency expertise versus building internal capabilities. December’s data hints at a potential trend toward a hybrid model, blending external insights with in-house execution.

In other words, it’s not clear whether brands are going to shift to one side or another at least in the coming months. We shall see as 2025 rolls in.

“The shift to in-house teams usually occurs for us in December, as brands make changes for the new year. Luckily for us at In Social, we did not have any churn to in-house this year! I think this is a great indicator of trust in agencies for 2025 - at least - with the agencies who delivered strong performance for BFCM like we did!”

Jess Grossman, Founder & CEO at In Social 

"In a world where digital trends shift at lightning speed, our agency thrives on pushing boundaries and reimagining possibilities. By harnessing creativity and data-driven insights, we empower our clients to not just navigate the ecommerce landscape, but to lead it. Together, we turn challenges into opportunities and visions into reality."

Ahmed Elghobashy, Founder & CEO at Simplix Innovations

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Overall ecommerce optimism

Revenue projections for the next six months are optimistic but cautious. Ratings from 7 to 9 dominate, reflecting tempered confidence among agencies. The data suggests a renewed focus on strategic planning and innovation to drive growth in the upcoming year. Businesses seem poised to capitalize on new opportunities, leveraging tools like AI to streamline operations and personalize customer interactions.

"2024 revolutionized content creation for us, with AI enabling the production of more marketing content in less time. This has unlocked the ability to implement highly personalized strategies tailored to diverse buyer personas.

Dennis Kroon, Founder at Ecommerce Accelerator

“Heading into the New Year, we’re seeing a renewed energy from businesses. Many are leaning on agency partners to kickstart growth and tackle 2025 with fresh strategies. It’s exciting to see this focus on innovation and scaling take center stage.”

Preslav Nikov, Founder & CEO, craftberry

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2025 is looking good for ecommerce agencies

Optimism levels are slightly subdued compared to the yearly average, but ratings between 7 and 9 still indicate a positive outlook. The data reflects a measured approach, as brands and agencies navigate post-pandemic recovery and economic uncertainties. Long-term collaborations and a focus on brand authenticity are emerging as key drivers of sustained success.

"We’re wrapping up our analysis for the December 2023 - November 2024 period and comparing it to the previous year. The results are clear. Our biggest growth successes in PPC, SEO, and Email Marketing come from long-term collaborations with clients who prioritize consistency. These aren’t one-off pushes; they’re accounts where we’ve been able to apply best practices and invest effort month after month.

It’s not magic. It’s about playing the long game, following proven strategies, and staying consistent. The data shows that sustainable growth isn’t an overnight achievement; it’s the result of steady, focused work over time."

Stefan Chiriacescu, CEO at eCommerce Today Shopify Agency

"I've observed a remarkable shift in 2024, with over 70% of our clients prioritizing comprehensive brand identity overhauls rather than traditional customer acquisition strategies. This trend reflects a deeper understanding that a strong, authentic brand presence serves as the foundation for sustainable growth, particularly in today's visually-driven digital landscape. In 2024, this "brand-first" approach was seen by industry giants such as Jaguar, Bose, PayPal, Figma, Nokia, & more. I'm excited to see if this trend carries over into 2025 and grows further! “

John Wallace, Executive Director at Digital Savánt Group

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Wrapping up

All I have left to say is that it has been a pleasure working with all of these agency owners, and I have personally learned a lot from them. I cannot wait to see what 2025 has to offer for the ecommerce industry.

From myself and the Referralcandy team, have an amazing christmas break and happy 2025!

Some of the agencies who have agreed to participate in the report throughout the year include: Online Origins, SeaMonster Studios, Swanky Agency, Thooja, Audacious Commerce, Ecommerce Today, For My People, RPF Agency, Pluro, Webcetera, SmartBug Media, Gloross, VT Labs, Motif, TatJones, Growth Heist, EastsideCo, SmartSites, MageMontreal, GetVisible, StubGroup, Thooja, Gudu, TenThousandFootView, Storetasker,SEOWorks, Zettler Digital, Saro Media, Velstar, Simplixi Innovations, Bakklog, EmailKong, Takeover Media, Medito Digital, Bedford Lane and CRO Media.