Click bait: Growing demand for internet advertising has boosted industry revenue

The Advertising Agencies industry provides advertising services to clients across all forms of media. The industry has performed well over the past five years, despite declining demand from print and broadcast media. Revenue is projected to increase at an annualised 3.4% over the five years through 2019-20, to reach $3.2 billion. This solid growth is due to a greater number of clients spending more on a range of advertising services, particularly online advertising. However, revenue is anticipated to grow by a relatively modest 1.9% in the current year, due to a decline in total business profit and weak business confidence. These trends have partly offset stronger demand from internet more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Higher total business profit and greater demand for internet advertising have driven industry growth
  • Greater integration across different advertising media has prompted industry restructuring
  • Profit margins are forecast to fall as a share of revenue, due to increased price competition
  • Industry Report - Industry Key Buyers Chapter

    The Advertising Agencies industry has a low concentration level, with the four largest players projected to account for 26.6% of industry revenue in 2019-20. The major industry players are holding companies that generally own many small individual and specialist advertising agencies. Many of these holding companies started as individual advertising agencies before merging with and acquiring other advertising firms, and complementary marketing and communications businesses, such as public relations agencies, market research firms, web developers and digital agencies. These mergers have occurred as clients have increasingly sought marketing campaigns that integrate traditional media advertising with below-the-line methods...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 the 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
  • Growth trends
  • 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
  • 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, Publicis Communication Pty Limited, Interpublic Australia Holdings Pty Ltd,
  • Table: WPP AUNZ LTD - financial performance
  • Table: Omnicom Media Group Australia Pty Ltd - financial performance
  • Table: Publicis Communication Pty Limited - financial performance
  • Table: Interpublic Australia Holdings Pty Ltd - 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Above-The-Line Advertising
  • Traditional mass media advertising through newspapers, magazines, radio, TV, the internet and billboards, which 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.
  • 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
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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 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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