Supporting guide
Vertical Positioning for Agencies
Vertical positioning means focusing your agency on one industry, which can earn faster trust and higher rates but concentrates your risk in that market.
This guide to vertical positioning, published by Tim Kilroy, helps established marketing and PR agencies decide whether an industry focus is a moat or a trap for them, and how to choose a market they can genuinely dominate.
Published by Tim KilroyLast updated:
Should my agency pick a vertical?
Pick a vertical if you already have depth in one market and can live with that market's good and bad years. A niche buys faster trust and higher rates. It also concentrates risk. Tim Kilroy's warning: “Nobody tells you what to do when the niche has a bad year.”
If your depth is in a buyer or an outcome that crosses industries, a buyer and outcome focus may suit you better. The agency positioning playbook compares both.
Vertical positioning, defined
Definition
Vertical positioning, in the Agency Playbook Journal
Vertical positioning is an agency's choice to serve one industry or market, so buyers in that market see it as the agency that already understands their world.
It works because buyers categorize agencies using constructs they already know. “The agency for our industry” is easy to remember and easy to recommend. The tradeoff is that your pipeline now rides on one market's weather.
Vertical focus compared
| Criterion | Vertical focus | Generalist |
|---|---|---|
| Speed of trust | Faster: buyers see relevant experience | Slower: buyers must translate your work |
| Pricing | Supports higher rates | Tends to collapse to rate |
| Memorability | Easy to describe in a sentence | Hard to describe |
| Concentration risk | High: one market drives the pipeline | Lower, but diluted demand |
How to choose a vertical
List where your best work lives
Look at your strongest case studies and longest-tenured clients by industry.
Test for dominance
Ask whether you can become one of the first names that market thinks of.
Check concentration
Treat the vertical like a single large client and plan for its bad year.
Commit and publish
Hold the choice for at least 18 months and publish work that proves it.
Common questions
What is vertical positioning for an agency?
Vertical positioning means focusing your agency on one industry or market rather than on one service. A vertical focus can buy faster trust and higher rates, because buyers see that you already understand their world. It also concentrates risk in that market’s good and bad years, so it works best when you can genuinely dominate the market you choose.
Is a niche a moat or a trap?
A niche is both, and the deciding variable is your margin for error. Focus earns trust and pricing power, but a niche can have a bad year that hits every client at once. Tim Kilroy’s advice is to choose a market you can dominate, then watch for over-concentration the way you would watch one client that has grown to 40% of revenue.
Is it bad to say we work with everyone?
For most established agencies, yes. A “we work with everyone” agency tends to get liked, recommended, and passed over, because buyers cannot remember an agency they cannot describe in a sentence. Positioning works as a forcing function for memory. Choosing a focus takes options away so the remaining ones connect your impact with the market’s need most strongly.
How long does it take for new positioning to work?
Expect new positioning to take a long time to register. Tim Kilroy’s positioning playbook notes that headlines can change in a week while repositioning takes years, because your work has to prove the words. The practical advice is to choose a position you can hold for at least the next 18 months and keep publishing work that supports it.
Can I fix my positioning without a coach?
Yes, many owners make progress on their own. Start with the 20-second test: can a client, a teammate, and you each describe what you do in under 20 seconds? Then compare your case studies with your claims, choose a buyer you can serve better than anyone, and commit. Outside help mainly speeds up diagnosis and holds you to the decision.
Want help applying this to your agency?
Tim Kilroy coaches established marketing and PR agencies on positioning, lead generation, and a repeatable way to win clients. Reach out through his contact page.
Contact Tim Kilroy