Promoting performance: Improving business confidence is expected to support growth

Industry revenue is projected to grow at a compound annual rate of 4.4% over the five years through 2018-19. Strengthening economic conditions allowed downstream businesses to expand their marketing budgets steadily during the first two years, enhancing demand. Major events such as the 2015 Rugby World Cup also boosted demand. Household finances improved during the years through 2015-16 and supported expansion, as downstream businesses increase spending on advertising when the purchasing power of consumers strengthens. Online advertising revenue also grew strongly as the number of consumers with access to the internet increased. Nevertheless, the benefits to the industry were curtailed because companies lost market share to external more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Rising research and development expenditure is expected to support industry growth
  • Demand from the telecommunications and technology sector increased over the past five years
  • Native advertising could provide a niche market for small and large advertising agencies alike
  • Industry Report - Industry Products Chapter

    Online advertisingOnline advertising is expected to generate 40.1% of industry revenue in 2018-19. The growth in digital media and the fragmentation of consumers' media habits have sharply increased the popularity of online advertising over the past five years. Online advertising campaigns range from banners to video advertisements. Viral campaigns and search engine marketing are other types of online advertising. However, although the total amount spent on online advertising is expected to be considerably higher than the amount spent on TV and radio advertising in 2018-19, this segment's share of revenue is depressed to some extent because a proportion of the total amount spent on online advertising is not relevant to the industry. Thi...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 a loyal customer base
  • Having a diverse range of clients
  • Degree of globalisation in the firm
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Real household disposable income 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 produce, place and provide advice about advertising material across a range of media, including TV, print, radio and the internet. They also advertise at the point of sale, on billboards and using direct mail promotional campaigns. The industry excludes public relations agencies, media sales representatives and market researchers.

    Industry Products
  • TV and radio advertising
  • Print media advertising
  • Online advertising
  • Out-of-home advertising
  • Professional consulting
  • Industry Activities
  • Creating and placing advertisements in media
  • Creating and placing outdoor advertisements
  • Creating and placing online advertisements
  • Providing consulting and advisory services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Real household disposable income
  • Demand from television programming and broadcasting
  • Research and development expenditure
  • Percentage of households with internet access

  • Current Performance
  • Revenue growth
  • Demand variations
  • Online advertising
  • Margins widen
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand widens
  • Growth limitations
  • Potential turbulence
  • Profitability improves
  • 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
  • Wired Telecommunications Carriers
  • Breakfast Cereals & Cereal-Based Foods Production
  • Motor Vehicle Manufacturing
  • Department Stores
  • Public Relations & Communication Activities

  • Key Selling Industries
  • Market Research & Public Opinion Polling
  • Specialised Design Activities

  • Products & Services
  • Online advertising
  • TV and radio advertising
  • Print media advertising
  • Other
  • Out-of-home advertising
  • Professional consulting
  • Chart: Advertising Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Fast-moving consumer goods sector
  • Durable goods manufacturers
  • Telecommunications, media and technology sector
  • Health-care sector
  • Retailers
  • Finance sector
  • Other
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Advertising Agencies

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Advertising Agencies Industry

  • Industry Globalization
    WPP plc,
  • 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
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Above-The-Line Advertising
  • This includes traditional mass media advertising through newspapers, magazines, radio, TV, the internet and billboards.
  • Below-The-Line Advertising
  • An advertising strategy that targets specific niche audiences.
  • Native Advertising
  • A type of advertising, usually online but feasibly elsewhere, that matches the form and function of the platform upon which it appears.
  • Out-Of-Home Advertising
  • Any type of advertising that reaches consumers while they are outside their homes.
  • What Our Customers Say

    Why buy this report?

    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.

    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:
    • 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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