DesignRush Study Reveals West Virginia as Best State for Digital Business Growth

U.S. digital marketing agencies continue to be a dominant force in the industry, with a value expected to triple to over $1 trillion by the year 2032. 

While its overall growth in the U.S. market presents steady opportunities for new and old agencies, some states in the country have it easier than others.

Knowing what these agencies can offer compared to others in different states can help digital businesses choose the location to achieve a higher ROI.

DesignRush‘s exclusive state analysis revealed that West Virginia is the most attractive state for digital business growth this 2024, boasting a Business Potential Score (BPS) of 82.3.

With only 75 agencies, they face less competition, which translates to more opportunities for growth.

They also benefit from a lower average tax of $1.36 million (64% of national average) allowing them to retain more earnings. 

The state's GDP of $99.5 million further supports a stable economy ideal for digital marketing growth. 

Next to West Virginia are Mississippi and Kansas, with 164 and 384 agencies, respectively.  

Results show that Mississippi agencies face an average tax burden of $1,529,000, while Kansas agencies face an average tax of $2,336,000 — both are still significantly less than the national average.  

With GDPs of $146.4 million and $226 million, Mississippi and Kansas offer a balanced and promising market for digital marketing agencies. 

The DesignRush Methodology

DesignRush’s study highlights how understanding key factors can give businesses crucial insights into the digital marketing industry.  

To identify the best and worst states, we assigned a business potential score to each one based on three key metrics:

• Business opportunities
• Tax efficiency
• Gross Domestic Product (GDP)

States with the highest business potential scores (BPS) represent states with better opportunities, while the lowest-ranked states indicate poor business opportunities for digital businesses in 2024.

By pinpointing states with the best growth environments, companies can make well-informed decisions on where to invest, expand, or set up their agencies. 

You can access the full dataset here.