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Advertising Agencies in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Advertising Agencies Market Research Report | NAICS 54181 | Dec 2016

Making a name: Revenue will grow as agencies adjust to the changing media landscape

IBISWorld’s Advertising Agencies market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
Annual Growth
Industry Threats & Opportunities
  • As traditional services lose demand, advertisers will focus on digital media to remain relevant
  • The media landscape has exhibited a high level of change over the past five years
  • Total advertising expenditure is expected to grow, spurring industry revenue growth
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Industry Analysis & Industry Trends

The Advertising Agencies industry has grown over the past five years due to 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. Following the overall economy, corporate profit and consumer spending both rebounded in the past five years, leading consumers of advertising services to be in better financial positions... ... purchase to read more

Industry Report - Industry Key Buyers Chapter

The Advertising Agencies industry has a low to moderate level of market share concentration. In 2016, the top four advertising agencies are expected to account for 32.8% of industry revenue. Over the past five years, market share has steadily increased, in line with merger and acquisition activity. For example, Interpublic Group of Companies' subsidiary, Lowe and Partners, acquired Lowe Profero, a global digital network that specializes in digital advertising, media and marketing solutions. This trend is indicative of many large agencies expanding into global markets, which has allowed these agencies to attract a customer base of clients that wanted to streamline their global advertising expenditures.

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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... purchase to read more


    Industry ProductsRelated Reports

    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 servicesCreative servicesPublic relations servicesMedia planning, buying & representation
    Industry Activities
    Creating advertising campaignsDisseminating advertising campaigns through available mediums, such as TV, periodicals and digital

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Total advertising expenditure
  • Consumer spending
  • Corporate profit
  • Investor uncertainty
  • Current Performance
  • Positive demand
  • Digital media spurs growth
  • The changing media landscape
  • Industry structure
  • 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
  • Products & Markets
    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
  • Other
  • Media planning, buying & representation
  • Public relations services
  • Chart: Advertising Agencies Industry Products and Services Segmentation
  • Demand Determinants
  • Total media expenditure
  • Consumer and business sentiment
  • Media consumption habits
  • Major Markets
  • TMT
  • Retail sector
  • Financial services
  • Automotive sector
  • Travel & entertainment
  • Other
  • Consumer packaged goods
  • Pharmaceutical & Healthcare sector
  • Chart: Major Market Segmentation for the Advertising Agencies Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • 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
    Major Companies
    Omnicom Group Inc.
    The Interpublic Group of Companies Inc.
  • Table: Omnicom Group Inc. - financial performance
  • Table: The Interpublic Group of Companies Inc. - financial performance
  • Table: WPP PLC - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Advertising Agencies Industry
  • Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Total Advertising Expenditures (2007-2021)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
  • 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.

  • Why Buy this Report?
    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 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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