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Advertising Agencies in the US Industry Data and Analysis
Advertising agencies have benefitted from rising consumer spending, corporate profit and per capita disposable income. Despite the outbreak of COVID-19 and falling advertising expenditure in 2020, as corporate profit returned in the following years, agencies were able to capitalize on an explosion of pent-up demand as businesses targeted a consumer base with growing disposable income. As traditional media advertising expenditures decline, digital ad spending has captured the spotlight. Consumer behavior, increasingly leaning towards online platforms and mobile devices, has reshaped advertising strategies, pushing agencies to focus on digital-first approaches. Industry-wide revenue has been growing at a CAGR of 3.6% over the past five years and is expected to total $78.2 billion in 2025, when revenue will inch forward by an estimated 0.9% and profit will slide to 20.7%.
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What's included in this industry analysis
IBISWorld's research coverage on the Advertising Agencies industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released September 2025.
About this industry
What's this industry report about?
The Advertising Agencies industry in the United States operates under the NAICS industry code 54181. Advertising agencies create advertising campaigns for periodicals, newspapers, radio, TV and other media. Through in-house capabilities or subcontracting, ad agencies provide advice, creative services, account management, production of advertising material and media planning and buying (e.g. ad placement). Related terms covered in the Advertising Agencies industry in the United States include below-the-line, traditional media, new media and viral marketing.
What's included in this industry?
Products and services covered in Advertising Agencies industry in the United States include Bundled creative and placement services, Creative services and Media buying and planning services.
What companies are included in this industry?
Companies covered in the Advertising Agencies industry in the United States include Wpp Plc, Omnicom Group Inc. and Publicis Groupe SA.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Advertising Agencies industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Advertising Agencies industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Advertising Agencies industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Advertising Agencies industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Advertising Agencies industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Advertising Agencies industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Advertising Agencies industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Advertising Agencies industry in the United States.
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Frequently Asked Questions
What is the market size of the Advertising Agencies industry in the United States in 2026?
The market size of the Advertising Agencies industry in the United States is $78.2bn in 2026.
How many businesses are there in the Advertising Agencies industry in the United States in 2025?
There are 105k businesses in the Advertising Agencies industry in the United States, which has grown at a CAGR of 6.6 % between 2020 and 2025.
How may import tariffs affect the Advertising Agencies industry in the United States?
The Advertising Agencies industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Advertising Agencies industry in the United States?
The Advertising Agencies industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Advertising Agencies industry in the United States grown or declined over the past 5 years?
The market size of the Advertising Agencies industry in the United States has been growing at a CAGR of 3.6 % between 2020 and 2025.
What is the forecast growth of the Advertising Agencies industry in the United States over the next 5 years?
Over the next five years, the Advertising Agencies industry in the United States is expected to grow.
What are the biggest companies in the Advertising Agencies industry in the United States?
The biggest companies operating in the Advertising Agencies industry in the United States are Wpp Plc, Omnicom Group Inc. and Publicis Groupe SA
What does the Advertising Agencies industry in the United States include?
Advertising campaigns through available mediums, such as TV, periodicals and digital and are part of the Advertising Agencies industry in the United States.
Which companies have the highest market share in the Advertising Agencies industry in the United States?
The company holding the most market share in the Advertising Agencies industry in the United States is Wpp Plc.
How competitive is the Advertising Agencies industry in the United States?
The level of competition is moderate and increasing in the Advertising Agencies industry in the United States.
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