Going viral: Growing online advertising and business confidence drive revenue

The Advertising Agencies industry provides services to clients wanting to advertise across a range of media. The industry has performed well over the past five years, despite declining demand from print and broadcast media. Industry revenue is expected to increase at an annualised 3.3% over the five years through 2018-19, to reach $3.0 billion. This high growth is due to a greater number of clients spending more on a range of advertising services, particularly online advertising. Industry revenue is anticipated to increase by 3.2% in the current year due to positive business confidence, increases in total business profit and greater online advertising demand. These trends are expected to offset falling demand from broadcast and print media...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
3.3%
Forecast Growth 19-24
Profit
Employment
16,590
Businesses
8,039

Industry Threats & Opportunities

  • Higher total business profit and positive business confidence have driven industry growth
  • Greater integration across different advertising media has prompted industry restructuring
  • Industry profit is likely to fall as a share of revenue due to increased price competition
  • Industry Report - Industry Investment Chapter

    The Advertising Agencies industry has a low level of capital intensity. Industry firms have high staff requirements, with employees needing to be highly skilled and knowledgeable regarding creative development, research, meetings and servicing client needs. Some peak demand can be handled by using subcontracted specialists, which can help boost resources at critical times. Capital equipment expenses include the acquisition of computers and associated software, mobile and other communication systems, and company vehicles.For every dollar required for labour inputs in 2018-19, an expected $0.04 will be spent on capital. The industry’s capital intensity has decreased slightly over the past five years, as wages have increased as a portion of revenue, while depreciation has declined. Cap...purchase to read more.

    Additional Insights for the Advertising Agencies Industry

    IBISWorld has determined the most important Key Success Factors for the Advertising Agencies are:

  • Ability to effectively communicate and negotiate
  • Marketing of differentiated products
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Total business profit and Demand from internet publishing and broadcasting in the Advertising Agencies industry impact industry performance..

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    What's in this report

    What is the Advertising Agencies Industry?

    Industry companies provide clients with advertising services, such as creating advertising campaigns and materials. Industry revenue relates to revenue received from developing and producing advertising campaigns, rather than revenue from client billings.

    Industry Products
  • Print advertising campaigns
  • Broadcast advertising campaigns
  • Online and mobile advertising campaigns
  • Billboard advertising campaigns
  • Other advertising services
  • Industry Activities
  • Advertising agency services
  • Advertising material preparation services
  • Advertising services (except the sale of advertising space in own publication or broadcast)
  • Aerial advertising services
  • Internet and mobile advertising services
  • Direct mail advertising services
  • Sample distribution services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total business profit
  • Demand from internet publishing and broadcasting
  • Business confidence index
  • Demand from broadcasting (except internet)
  • Household consumption expenditure
  • Demand from newspaper, periodical, book and directory publishing

  • Current Performance
  • Advertising revenue drivers
  • Moving online
  • Integrated advertising campaigns
  • Advertising agency restructuring
  • Chart: Revenue Growth

  • Industry Outlook
  • Future revenue growth
  • Online and broadcast advertising
  • Global advertising links
  • 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
  • Retail Trade
  • Motor Vehicle Dealers
  • Accommodation and Food Services
  • Financial and Insurance Services
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Media Buying Agencies
  • Motion Picture and Video Production
  • Printing Support Services

  • Products & Services
  • Online and mobile advertising campaigns
  • Broadcast advertising campaigns
  • Print advertising campaigns
  • Billboard advertising campaigns
  • Other advertising services
  • Chart: Advertising Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other sectors
  • Retailers
  • Finance, banking and insurance firms
  • Property and construction services firms
  • Manufacturing and wholesaling sectors
  • Transport sector
  • Hospitality, entertainment and leisure firms
  • Governments
  • 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
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Advertising Agencies Industry

  • Industry Globalization
    WPP AUNZ LTD, Omnicom Media Group Australia Pty Ltd, Interpublic Australia Holdings Pty Ltd, Publicis Communication Pty Limited,
  • Table: WPP AUNZ LTD - financial performance
  • Table: Omnicom Media Group Australia Pty Ltd - financial performance
  • Table: Interpublic Australia Holdings Pty Ltd - financial performance
  • Table: Publicis Communication Pty Limited - 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 (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
  • Includes traditional mass media advertising through newspapers, magazines, radio, TV, the internet and billboards. This is often targeted to reach expected key demographic groups and online audiences.
  • Below-The-Line Advertising
  • An advertising strategy that uses direct means of communication, such as direct mail or email, and incentives such as coupons, competitions and price discounts, rather than mass media.
  • Mass Media
  • Mainstream media with a broad reach such as TV, newspapers, magazines and billboards.
  • Spam
  • Unsolicited commercial electronic messages that are sent to multiple email addresses, mobile phones or smartphones.
  • Through-The-Line
  • An advertising strategy involving both above- and below-the-line communications in which one form of advertising points the target to another form of advertising, thereby crossing the line.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Advertising Agencies market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-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.

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