Key Takeaways:
- Demand for marketing agency services is rising sharply in the AI era, with search interest in “marketing agency” climbing significantly over the past several years.
- Despite stronger demand, widespread late payments are creating operational and cash flow risk for agencies, making financial discipline a bigger strategic priority.
A Kaplan Group report shows that demand for marketing agency services is climbing fast in the artificial intelligence (AI) era, even as nearly all agencies wrestle with chronic late client payments that put their cash flow and long-term stability at risk.
The report combines two years of Bureau of Labor Statistics employment data, two decades of Google Trends demand signals, and the latest B2B payment research to map where agency demand is growing and how severely late payments are undermining agency finances nationwide.
The report tracks a clear shift in how businesses search for help. Average U.S. search interest in “marketing agency” jumped from 12.9 in the 2010s to 47.3 across the 2022 to 2025 window, a gain of roughly 266%. Over the same period, interest in “advertising agency” fell about 15%, sliding from 19.2 to 16.4. Searches for “marketing” rose modestly from 50.4 to 58.6, while “advertising” dropped about 15%.
How Widespread Are Late Payments
In the current economy that faces many headwinds, many agencies report late payment on one in four invoices, a pattern that can take a steep financial toll on otherwise growing firms. Despite rising demand, late payments have become a structural threat across the sector. Research from Ignition’s 2025 Agency Pricing and Cash Flow Report shows that 97% of agencies regularly deal with late client payments, and 71% say at least one in every four invoices is paid late.
More than half, 56%, report that late invoices typically take two weeks to two months past the due date to collect. The drag on time an issue as well: 84% of agencies spend between three and 10 or more hours each month chasing overdue invoices, and 63% describe their cash flow as unpredictable.
The Impact AI is Having
The acceleration lines up with the mainstream adoption of generative AI tools. Interest in “marketing agency” stepped up in 2020 and 2021, then climbed sharply from 2022 onward, reaching an average of 48.8 in the most recent window.
To show where activity is heating up, The Kaplan Group built a state-level Trend Score that blends search interest with labor-market fundamentals. A handful of states, led by Oregon, Virginia, New York, New Jersey, and Maryland, pair strong demand signals with attractive jobs and wage data for marketing and advertising roles.
That growth story collides with a payment problem. The digital media and advertising supply chain shows even sharper strain. According to OAREX’s H1 2025 Digital Media and Advertising Payments Study:
- 58% of digital media payments were late in the first half of 2025, up from 49% in the prior period.
- Payments more than five days late reached 32%, a record high, while those more than 15 days late hit 18%, also a record.
- The share of consistently on-time payers dropped from 53% to 43% in a single reporting period.
The forces driving record demand for marketing services are running headlong into a late-payment environment that leaves even fast-growing firms exposed to cash flow risk. Agencies that tighten payment terms, invest in collections, and align pricing with risk are far better positioned to turn this AI-era boom into stable margins and lasting resilience.
The complete findings are available here.
