Spreading the word: Industry revenue will grow as agencies adjust to the changing media landscape

The Advertising Agencies industry provides creative services, advice, account management and production of advertising material across different channels for any industry. Over the five years to 2018, advertising firms have benefited from growing corporate profit and the proliferation of digital media, which have broadened operators' access to their target audiences. However, not all industry trends have been positive over the past five years. As more individuals have accessed media with an increasingly wide variety of devices, audiences have become much more fragmented, forcing industry operators to get creative in reaching broad audiences as well as paving a way for small niche operators to emerge, keeping market share concentration low...purchase to read more.

Industry Statistics & Market Size
Revenue
$51bn
Annual Growth 13-18
4.0%
Forecast Growth 18-23
Profit
Employment
260,550
Businesses
69,587

Industry Threats & Opportunities

  • As more individuals have accessed media with an increasingly wide variety of devices, audiences have become much more fragmented
  • Robust demand for video advertisements has stimulated industry revenue growth
  • During the outlook period, total advertising expenditure is expected to grow
  • Industry Report - Industry SWOT Analysis Chapter

    The Advertising Agencies industry is in the mature phase of its life cycle. However, the emergence of digital media has provided an opportunity for vibrant growth. IBISWorld expects industry value-added (IVA), a measure of the industry's contribution to the overall economy, to increase at an annualized rate of 2.8% over the 10 years to 2023. Comparatively, GDP is forecast to grow at an annualized rate of 2.1% over the same period.Although the industry has a low level of market share concentration, there are a few large global firms dominating the market and gaining market share. Sev...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

  • 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 Consumer spending in the Advertising Agencies industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Advertising Agencies 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
  • Public relations services
  • Media planning, buying & representation
  • 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
  • Consumer spending
  • Corporate profit
  • Investor uncertainty

  • Current Performance
  • Industry structure
  • Positive demand
  • Digital media spurs growth
  • The changing media landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Emerging trends
  • Viral marketing
  • 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
  • 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
  • Public relations services
  • Media planning, buying & representation
  • Chart: Advertising Agencies Industry Products and Services Segmentation

  • Demand Determinants
  • Total media expenditure
  • Consumer and business sentiment
  • Media consumption habits

  • Major Markets
  • Other
  • TMT
  • Consumer packaged goods
  • Financial services
  • Automotive sector
  • Retail sector
  • Pharmaceutical & Healthcare sector
  • Travel & entertainment
  • 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
    ProfitPurchasesWagesDepreciation, marketing, rent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Advertising Agencies

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Omnicom Group Inc., The Interpublic Group of Companies Inc., WPP PLC,
  • Table: Omnicom Group Inc. - financial performance
  • Table: The Interpublic Group of Companies Inc. - financial performance
  • Table: WPP PLC - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total Advertising Expenditures (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Below-The-Line
  • A more direct promotional activity undertaken to reach consumers, often including direct mail, SMS and e-mail, and incentives such as coupons, competitions and price discounts.
  • 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?

    The Advertising Agencies industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear