According to this, corporate marketing budgets are being reduced in the UK – a bigger drop than expected at the end of 2010.

This will have an inevitable effect on Agency-land. And how can hard-pressed Agencies secure new business, as well as improving the profitability of existing client accounts amidst such doom and gloom news this week?

Try this: Diversify and Simplify.

Here’s my example:

I’m working with a number of digital agencies, marketing agencies and PR agencies across the South West at the moment.

One of the win-win ways to increase their revenues and boost the coffers on their current client accounts in 2010 has been to introduce the clients to a range of social media and blogging services, to add value on their current marketing services, get them up to speed with online developments, and  – crucially – raise the profits of both the agencies and their clients.

This was a great example from last year when a digital agency saw £250,000 raised in 12 weeks from the launch of a social media services division, and then the selling into their corporate client base with senior management.

The agency were happy.

Their clients were happy.

And, of course, I was happy.

The digital agency, with a bit of help, utilised the Diversify and Simplify techniques on social media and blogging.

It’s a great way of increasing revenues, even when the financial climate is still harsh.

Add new services, get your clients excited about them, and let Nature takes its course. I enjoyed the journey with them, too.