Taking full advantage: 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 moderately well over the past five years, despite declining demand from print and broadcast media. Industry revenue is expected to increase at an annualised 3.5% over the five years through 2017-18, to reach $2.5 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 projected to grow 4.4% in the current year, due to positive business confidence and greater online advertising demand, which will offset falling demand from broadcast and print media...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Greater use of online advertising 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 SWOT Analysis Chapter

    The Advertising Agencies industry is in a growth phase of its economic life cycle. Stronger demand for a range of advertising services from the industry, as well as increases in industry employment and enterprises, has driven this growth. Further, industry value added, which measures an industry's contribution to the economy, is expected to increase at an annualised 2.6% over the ten years through 2022-23, which is higher than the anticipated 2.5% annualised GDP growth over the same period.Price-based competition among traditional, main-media-focused agencies is high. This competition will likely continue increasing, as marketing dollars shift towards online advertising and below-the-line communication methods. The...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

  • Ability to effectively communicate and negotiate
  • Marketing of differentiated products
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Demand from broadcasting (except internet) 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
  • Business confidence index
  • Demand from broadcasting (except internet)
  • Demand from internet publishing and broadcasting
  • 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
  • Motor vehicle dealers
  • Finance and insurance firms
  • Entertainment and leisure firms
  • Real estate firms
  • Tourism, travel and accommodation 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
  • Internal competition
  • External 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
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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