Industry Analysis & Industry Trends
With strong and steady economic growth over the past several decades, China has developed into the second-largest advertising market in the world. Over the past five years, revenue for the Advertising Agency industry has been growing 16.6% annually. The industry is set to generate $79.6 billion in 2014, up 13.3% from 2013. Industry assets are estimated to total $57.5 billion in 2014, up 15.3% from 2013.
There are over 101,000 agencies employing about 1.90 million people with an estimated payroll of $15.3 billion in 2014. Although the Advertising Agencies industry as a whole has maintained rapid growth, localized advertising markets have become stagnant. This is due to local advertising companies being geographically scattered and small in scale.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on labor (i.e. wages, including contract labor), 11.5 cents are invested in capital in the Advertising Agencies industry, which indicates a low capital intensity.
The industry requires a high degree of labor-intensive creative input, though some general demand can be handled through using subcontracted specialists, and this can help to save core resources at critical times.
Small-scale firms generally have lower capital investment levels than large firms. This is due to the high costs of new administrative expenses, which larger firms are usually more able to afford. Smaller firms tend to provide relatively basic advertising services... purchase to read more