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 five years through 2017, revenue for the Advertising Agency industry has been growing 6.8% annually. The industry is set to generate $108.6 billion in 2017, up 6.2% from 2015. Industry assets are estimated to total $80.7 billion in 2017, up 7.1% from 2016.There are over 123,963 agencies employing about 3.7 million people with an estimated payroll of $30.6 billion in 2017. 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 Statistics & Market Size
Revenue
$109bn
Annual Growth 12-17
6.8%
Forecast Growth 17-22
Profit
Employment
3.7m
Businesses
947,586

Industry Report - Industry Analysis Chapter

Due to rapid economic growth in the past several decades, China has developed into the second-largest advertising market in the world. In addition, the Chinese government called for the support of the media industry, actively promoting the healthy development of this industry. Over the five years through 2017, industry revenue has increased 6.8% annually from $78.3 billion in 2012 to an estimated $108.6 billion in 2017. Industry profitability is expected to be relatively high in 2017, accounting for 10.8% of revenue.Industry revenue rose rapidly in 2008 as companies spent large sums on advertising during the Beijing Olympic Games. Cli...purchase to read more.

Additional Insights for the Advertising Agencies Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Advertising Agencies Industry are

  • Access to highly skilled workforce
  • Ability to compete on tender
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Economic Indicators - Advertising - Total Media Expenditure and Economic Indicators - Consumer Sentiment Index in the Advertising Agencies industry impact industry performance..

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    What's in this report

    What is the Advertising Agencies Industry?

    Advertising Agencies industry in China create advertising campaigns for clients and place these advertisements in periodicals, newspapers, billboards, shop windows, the internet, radio, television, airports, railway stations, bus shelters and other media. Firms provide a range of services, including consulting, creative talent services, advertising material production and media planning. This industry does not include video production or advertising models.

    Industry Products
  • Advertising design and production
  • Advertising planning, public relations and market research
  • Advertising publishing, promotion and display
  • Advertising agency services
  • Other advertising services
  • Industry Activities
  • Advertising planning, public relations and market research
  • Advertising design and production
  • Advertising publishing, promotion and display
  • Advertising agency services
  • Other advertising services, such as advertising handouts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Economic Indicators - Advertising - Total Media Expenditure
  • Economic Indicators - Consumer Sentiment Index
  • Per Capita Disposable Income
  • Real GDP
  • Pervasive Technology - Internet Connections

  • Current Performance
    Industry issues
  • Chart: Revenue Growth

  • Industry Outlook
    Future developments
  • Table: Advertising Agencies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Advertising Agencies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Financial Intermediation
  • Real Estate
  • Culture, Sports and Entertainment

  • Key Selling Industries
  • Internet Services
  • Magazine and Periodical Publishing
  • Market Research
  • Newspaper Publishing
  • TV & Radio Broadcasting

  • Products & Services
  • Advertising design and production
  • Advertising planning, public relations and market research
  • Advertising publishing, promotion and display
  • Advertising agency services
  • Other advertising services
  • Chart: Advertising Agencies Industry Products and Services Segmentation

  • Demand Determinants
  • Economic development
  • Disposable income
  • Development of advertising channels
  • Special events
  • Government regulation

  • Major Markets
  • Television
  • Internet
  • Outdoor media
  • Newspapers
  • Magazines
  • Radio
  • Chart: Major Market Segmentation for the Advertising Agencies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Advertising Agencies

  • Basis of Competition
  • Market position and media resources
  • Pricing
  • Customer relationships
  • Creative talent
  • Range of services
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Advertising Agencies Industry

  • Industry Globalization
    Wieden + Kennedy (Shanghai) Co. Ltd., DDB China Group, Publicis (China) Group, Guangdong Advertising Co. Ltd., Lowe Shanghai, China,
  • Table: Wieden + Kennedy (Shanghai) Co. Ltd. - financial performance
  • Table: DDB China Group - financial performance
  • Table: Publicis (China) Group - financial performance
  • Table: Guangdong Advertising Co. Ltd. - financial performance
  • Table: Lowe Shanghai, China - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Advertising Agencies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Advertising Agencies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Assets (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Advertising Revenue
  • Billings after deducting expenses paid to media for advertising publishing. It is the taxable income amount for advertising agents.
  • Billings
  • Advertising agents' actual revenue from advertising planning, designing, producing, publishing, factoring and other businesses relating to advertising.
  • Industry Revenue
  • The sum of industry participants' advertising revenue, rather than billings.
  • What Our Customers Say

    Why buy this report?

    The Advertising Agencies market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Advertising Agencies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Advertising Agencies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Advertising Agencies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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