In with the new: Agencies benefit from, and adapt to, the state's rapid growth in new media

The Advertising Agencies industry in California has grown over the past five years due to increasing business and consumer spending. In California, growth in the digital media segment of the industry has been faster than the national average as the number of mobile internet connections in the state has skyrocketed. This has given agencies more space to place their clients' digital advertisements as consumers increasingly interact with media on their personal devices. At the same time, the number of cable TV subscriptions has fallen, cutting into traditional media's share of the California Advertising Agencies industry...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 12-17
2.3%
Forecast Growth 17-22
Profit
Employment
59,138
Businesses
29,197

Industry Threats & Opportunities

  • In California, growth in the digital media segment of the industry has been faster than the national average
  • Demand for new media poses a threat to integrated agencies
  • Total advertising expenditure is expected to rise, spurring industry growth
  • Industry Report - Starting a New Business Chapter

    The advertising agencies industry has a low level of concentration, although rising market concentration among the industry's top players will pose a barrier to entry in the five years to 2022. Additionally, most businesses require a large scope of services across a wide range of cities, states or even countries, benefiting large agencies with the resources to handle such campaigns, and further posing a barrier to small operators. Nevertheless, opportunities exist for niche and local operators service smaller clients, select industries, or specific counties or regions.Larger agencies also maintain the advantage of being able to provide certain services at a lower price, particularly with regard to media buying. An ...purchase to read more.

    Additional Insights for the Advertising Agencies in California Industry

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

  • Having an effective performance monitoring system
  • Having a relationship with upstream and downstream industries
  • Membership in the AAAA
  • IBISWorld analysts also discuss how external factors such as Total advertising expenditure and Number of Mobile Internet Connections in California in the Advertising Agencies in California industry impact industry performance..

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    What's in this report

    What is the Advertising Agencies in California Industry?

    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.)

    Industry Products
  • Integrated advertising services
  • Creative services
  • Media planning, buying & representation
  • Public relations
  • Industry Activities
  • Creating advertising campaigns
  • Disseminating advertising campaigns through available mediums, such as TV, periodicals and digital
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total advertising expenditure
  • Number of Mobile Internet Connections in California
  • Number of cable TV subscriptions
  • Per Capita Disposable Income in California

  • Current Performance
  • Rising demand
  • New media spurs growth
  • Changing industry norms
  • Chart: Revenue Growth

  • Industry Outlook
  • Emerging trends
  • Viral marketing
  • Table: Advertising Agencies in California Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Breweries
  • Retail Trade
  • New Car Dealers
  • Domestic Airlines
  • Information
  • Wireless Telecommunications Carriers
  • Finance and Insurance
  • Accommodation and Food Services

  • Key Selling Industries
  • Audio Production Studios
  • Graphic Designers
  • Magazine & Periodical Publishing
  • Market Research
  • Movie & Video Production
  • Newspaper Publishing
  • Radio Broadcasting
  • Television Broadcasting

  • Products & Services
  • Integrated advertising services
  • Creative services
  • Media planning, buying & representation
  • Public relations
  • Other
  • Chart: Advertising Agencies in California Industry Products and Services Segmentation

  • Major Markets
  • TMT
  • Retail
  • Travel & entertainment
  • Financial services
  • Automotive sector
  • Other
  • Consumer packaged goods
  • Pharmaceutical & healthcare sector
  • Chart: Major Market Segmentation for the Advertising Agencies in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation, marketing, rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Advertising Agencies in California

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Publicis Groupe SA, Omnicom Group Inc., Walton Isaacson, WPP PLC,
  • Table: Publicis Groupe SA - financial performance
  • Table: Omnicom Group Inc. - financial performance
  • Table: Walton Isaacson - financial performance
  • Table: WPP PLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Advertising Agencies in California 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 in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Personal Income in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Affiliate Marketing
  • Refers to marketing technique where a business posts links to a retail (affiliate) website, and is paid commission for the web traffic or online sales that are generated through the link.
  • New Media
  • Digital media formats including online, cell phones and other digital devices.
  • Traditional Media
  • Media formats including TV, radio, newspapers and magazines.
  • Viral Marketing
  • Refers to marketing techniques that use social networks and other technologies to increase brand awareness or achieve other objectives.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Advertising Agencies in California provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Advertising Agencies in California:
    • 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 in California 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 in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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