Marketing Agency · Digital Practice
$2M New-Revenue Line, 33% of Agency Fees
A 40-person, $12M semiconductor marketing agency with 50+ existing clients had no organizational process for building digital or AI capability, and no track record for anyone to build one.
The new practice now accounts for $2M in revenue, one third of the agency's fees, built from zero.
Key Outcomes
- $2M in new-line revenue, one third of agency fees, built from zero
- 18% year-over-year revenue growth agency-wide
Challenge
Selling a brand-new capability with no track record inside the agency.
A 40-person agency with 50-plus existing clients already had working relationships built on services that weren't digital or AI. Selling a brand-new internal capability, in a newly created role with no track record inside this agency, meant asking established clients to trust something unproven instead of the services they already knew worked.
Solution
Built the practice, then built the team to run it.
Built the agency's first digital practice from zero. Founded its AI Task Force in 2023, ahead of most agencies in the category. Expanded the flagship account from $400K to $1M+ annually. Built repeatable growth frameworks, then hired and trained the team to run them without Jeff in every seat.
Result
A new revenue line, worth a third of the agency.
The digital practice now generates $2M in revenue, one third of total agency fees, up from nothing. Overall agency revenue grew 18% year over year. Client acquisition cost fell 30% and web conversion rose 20%, evidence the new capability was winning business the agency couldn't have won before.
"An agency's value is what it can do that its clients can't do themselves. This practice turned a capability gap into a new revenue line."
Digital practice share of agency fees
Digital practice, $2M Existing agency business
Digital practice revenue and its 33% share of agency fees are as published. No total agency-fee figure is published, so no dollar amount is shown for the remaining share.
Also improved
Where the commercial engine was leaking
An agency full of trusted relationships still had a capability gap its clients couldn't see a way around. Closing that gap took more than a new service line on a rate card. It took someone who could build the practice and prove it before asking clients to trust it.