A new report from business operations platform Ignition finds that almost all (97%) ad agencies are planning price increases for their services in 2025. 

36% of ad agencies are planning to boost prices by 5 to 10% this year. 28% are planning increases of between 11% and 15% while 10% are planning rate hikes of more than 20 percent. 

Ignition’s Agency Pricing and Cash Flow Report is based a survey conducted in April 2025 of 273 owners, executives, and senior leaders from marketing, branding, design, creative, digital, and advertising agencies across the U.S.  

Most respondents came from small and mid-sized agencies, with 1–50 employees. 

According to Ignition, the objective of the survey was to investigate agency challenges like pricing and packaging services, managing billing and out-of-scope work, and how cash flow "unpredictability” affects the ability to grow and scale.  

Greg Strickland, CEO of Ignition said that while most agencies raise rates, “few leverage pricing strategically to drive growth.” 

Too often, Strickland added, “businesses hesitate to raise prices because the process is manual, time-consuming, and uncomfortable. The result? Shrinking profit margins. Stalled growth. A vicious cycle. Pricing should be a growth engine, not a roadblock.” 

To his point, the survey found that cash flow issues forced 82% of those surveyed to delay hiring, or to implement software and other investments/expansions. 

About two-thirds reported “unpredictable” monthly cash flow. 

Nearly half of agencies (45%) only adjust their prices at contract renewal time, nearly a quarter (22%) never review prices at all.  

70% said they lose as much as $5,000 a month to “scope creep,” or work the agency does that is outside of the contracted for scope of work. 

84% said they spend 3 to 10 hours a month chasing late payments.  

The full report can be accessed here.