Advertising Agencies in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: April 2024
NAICS 54181CARevenue
$4.9bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
40,914
Businesses
8,154
Wages
$X.Xbn
Advertising Agencies in Canada industry analysis
Advertising agencies create and disseminate advertising campaigns through radio, print and digital platforms. The industry has benefited from the growth of digital media, encouraging investment in online ads. Over time, target audiences have become much more fragmented, forcing companies to get creative, and paving the way for small niche firms to emerge. Expansions in consumer spending led to businesses investing in advertising to develop brand awareness and maintain a competitive advantage. A significant disruption has been the COVID-19 pandemic, which contributed to a fall in revenue in 2020 as downstream demand contracted. Improving macroeconomic conditions during the following years bolstered industry performance. Revenue has been inclining at a CAGR of 0.5% to reach $4.9 billion in 2024, with industry revenue expected to inch forward a meager 0.3% in 2024 alone as inflation and spending declines take effect.
Trends and Insights
- The industry's growth is fueled by digital mediums such as tablets and smartphones, a stabilizing economy, and increased corporate profit despite a fragmented audience. As advertising becomes increasingly digital, innovative strategies like viral and influencer marketing are poised to become more prominent for engaging consumers.
- The auto industry dominates in driving advertising revenue, catering to world-leading manufacturers such as BMW and Honda. Meanwhile, financial services and food and beverage companies contribute significantly to the advertising industry's revenue.
- Ontario's large population and proximity to key markets make it a hotspot for the advertising industry, driven by small businesses' need for professional advertising services. With its large population and numerous industry establishments, Quebec attracts major French-speaking companies such as Publicis Groupe due to a growing demand for advertisements targeting its French-Canadian demographic.
- Canada's advertising industry has a low to medium market share concentration, with big companies gaining influence through mergers and acquisitions. The highly fragmented sector features many small specialized agencies, often preferred for their creativity, service, lower prices, and personal relationships.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.5 % over the past five years, to reach an estimated $4.9bn in 2024.
Trends and Insights
The adoption of online and mobile advertising bolsters industry revenue
- Advertisers have adjusted their content and resolution to better integrate with mobile apps, the fastest-growing product segment in the industry. These developments include mobile-friendly ad formats, location-based targeting, and optimizing campaigns for various mobile devices. This shift has enabled small advertisers specializing in online content to emerge.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Growth continues to be driven by digitization
- Improving economic conditions as the industry distances itself from the disruptions brought on by the pandemic will benefit advertising agencies. Inclines in the number of businesses and corporate profit, as the economy stabilizes, will contribute to growth.
Biggest companies in the Advertising Agencies in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
WPP PLC | 381.1 | 35.9 | 9.4 | |
Omnicom Group Inc. | 321.5 | 48.4 | 15.1 | |
Publicis Groupe | 166.3 | N/A | N/A |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Internet advertisements, Mobile advertisements and TV advertisements. Internet advertisements is the largest segment of the Advertising Agencies in Canada.
Trends and Insights
Internet advertising involves advertising across various internet platforms
- Internet advertising revenue has steadily grown due to mounting internet connectivity and digital media use. Internet advertising includes strategies like SEO, video advertising, banner ads, social media campaigns and email blasts
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Direct Mail Advertising in Canada
- Promotional Products in Canada
Complementors
- Graphic Designers in Canada
- Management Consulting in Canada
International industries
- Global Advertising Agencies
- Advertising Agencies in the US
- Digital Advertising Agencies in the US
- Advertising Agencies in Australia
- Advertising and Market Research Services in New Zealand
Table of Contents
About this industry
Industry definition
Advertising agencies create advertising campaigns and place such advertising in periodicals and newspapers, on radio and TV or other media. Through in-house capabilities or subcontracting, advertising agencies provide a full range of services, including advice, creative services, account management, media planning and buying and production of advertising material.
What's included in this industry?
Creating advertising campaignsSales promotion campaign servicesAdvertising consulting servicesCompanies
WPP PLCOmnicom Group Inc.Publicis GroupePurchase this report to view all 4 major companies in this industry.
Related Terms
NEW MEDIATRADITIONAL MEDIAVIRAL MARKETINGIndustry Code
NAICS 541810 - Advertising Agencies in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry's growth is fueled by digital mediums such as tablets and smartphones, a stabilizing economy, and increased corporate profit despite a fragmented audience. As ad...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The auto industry dominates in driving advertising revenue, catering to world-leading manufacturers such as BMW and Honda. Meanwhile, financial services and food and beverage...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario's large population and proximity to key markets make it a hotspot for the advertising industry, driven by small businesses' need for professional advertising services....
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Canada's advertising industry has a low to medium market share concentration, with big companies gaining influence through mergers and acquisitions. The highly fragmented sec...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
WPP, a leading communication services provider based in the UK, experienced slower growth due to the recent tech downturn. The company also announced its acquisition of the S...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of WPP PLC's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Omnicom Group Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Publicis Groupe's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for WPP PLC, and factors influencing its performance in the industry
- Description and key data for Omnicom Group Inc., and factors influencing its performance in the industry
- Description and key data for Publicis Groupe, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Advertising agencies indirectly get governmental support through subsidized client sectors, governmental contracts, and pandemic-related aid programs. Private support comes t...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wages are the most significant cost segment for advertising agencies, as the industry is labor-intensive and depends heavily on the skills and creativity of its employees. Th...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Advertising Agencies industry in Canada in 2024?
The market size of the Advertising Agencies industry in Canada is $4.9bn in 2024.
How many businesses are there in the Advertising Agencies in Canada industry in 2024?
There are 8,154 businesses in the Advertising Agencies industry in Canada, which has grown at a CAGR of 2.7 % between 2019 and 2024.
Has the Advertising Agencies industry in Canada grown or declined over the past 5 years?
The market size of the Advertising Agencies industry in Canada has been growing at a CAGR of 0.5 % between 2019 and 2024.
What is the forecast growth of the Advertising Agencies industry in Canada over the next 5 years?
Over the next five years, the Advertising Agencies industry in Canada is expected to grow.
What are the biggest companies in the Advertising Agencies market in Canada?
The biggest companies operating in the Advertising Agencies market in Canada are WPP PLC, Omnicom Group Inc. and Publicis Groupe
What does the Advertising Agencies in Canada include?
Creating advertising campaigns and Sales promotion campaign services are part of the Advertising Agencies industry.
Which companies have the highest market share in the Advertising Agencies in Canada?
The company holding the most market share in Canada is WPP PLC.
How competitive is the Advertising Agencies industry in Canada?
The level of competition is moderate and increasing in the Advertising Agencies industry in Canada.
