Online success: Strong demand for digital media buying services has lifted industry revenue

Demand from advertising agencies and from media planning services largely drive the Media Buying Agencies industry's performance. Following the development of an advertising campaign, an advertising agency typically engages the services of a media buying company to determine the best place and medium for the message, and arrange the lowest available price for the client. Other functions performed by industry operators include consumer research, developing advertising and media strategies, and media analytics and optimisation.With solid growth across the downstream advertising sector over the past five years, media buying companies have benefited from strong demand for digital media buying services...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
3.0%
Forecast Growth 19-24
Profit
Employment
9,430
Businesses
3,496

Industry Threats & Opportunities

  • Strong demand for digital media buying and consumer analytics has supported the industry
  • Demand for media planning and consumer analytics has supported growth in enterprise numbers
  • An increased focus on digital media and through-the-line advertising will benefit the industry
  • Industry Report - Industry Key Buyers Chapter

    The industry's four largest companies are projected to account for 33.0% of revenue in 2018-19, indicating a low concentration level. The eight largest companies are estimated to account for approximately 43% of industry revenue. The largest industry firms are holding companies that own many small individual and specialist advertising agencies, including media buying, planning, and research and strategy agencies.Industry concentration has increased over the past five years. The largest media buying agencies have generally increased market share, with many major clients tending to renew or upgrade contracts with these media firms. Med...purchase to read more.

    Additional Insights for the Media Buying Agencies Industry

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

  • Ability to effectively communicate and negotiate
  • Accessibility to consumers/users
  • Access to secure revenues
  • IBISWorld analysts also discuss how external factors such as Demand from advertising agencies and Demand from broadcasting (except internet) in the Media Buying Agencies industry impact industry performance..

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    What's in this report

    What is the Media Buying Agencies Industry?

    Industry operators are involved in media planning and buying activities. These activities include determining the optimal method of promoting client products and services in print or broadcast media, and then negotiating and purchasing advertising space or time. Industry revenue refers to revenue received from media buying activities and services, rather than client billings.

    Industry Products
  • TV media buying services
  • Print media buying services
  • Digital media buying services
  • Other media buying services
  • Media planning and strategy services
  • Advertising analytics and research services
  • Industry Activities
  • Advertising placement services
  • Advertising research and analysis services
  • Advertising space selling (on a commission or fee basis)
  • Media planning and strategy services
  • Media buying services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from advertising agencies
  • Demand from broadcasting (except internet)
  • Business confidence index
  • Demand from internet publishing and broadcasting
  • Demand from publishing (except internet and music publishing)
  • Total minutes of TV watched

  • Current Performance
  • Industry trends
  • Revenue growth
  • Profit and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and

    profit growth

  • Shrinking print demand
  • Increased media analytics
  • Table: Media Buying Agencies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Media Buying Agencies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Advertising Agencies

  • Key Selling Industries
  • Free-to-Air Television Broadcasting
  • Magazine and Directory Publishing
  • Newspaper Publishing
  • Pay Television
  • Radio Broadcasting

  • Products & Services
  • Digital media buying services
  • TV media buying services
  • Print media buying services
  • Media planning and strategy services
  • Other media buying services
  • Advertising analytics and research services
  • Chart: Media Buying Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Advertising agencies
  • Private businesses
  • Government
  • Other sectors
  • Chart: Major Market Segmentation for the Media Buying Agencies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent
  • Depreciation and utilities
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Media Buying Agencies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Media Buying Agencies Industry

  • Industry Globalization
    WPP AUNZ LTD, Dentsu Aegis Network Australia Holdings Pty Ltd, Omnicom Media Group Australia Pty Ltd, Interpublic Australia Holdings Pty Ltd,
  • Table: WPP AUNZ LTD - financial performance
  • Table: Dentsu Aegis Network Australia Holdings Pty Ltd - financial performance
  • Table: Omnicom Media Group Australia Pty Ltd - financial performance
  • Table: Interpublic Australia Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Media Buying 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 Media Buying 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, television, the internet, and billboards.
  • Analytics
  • The analysis and communication of patterns found in collected data.
  • Below-The-Line Advertising
  • An advertising strategy that uses direct means of communication, such as direct mail or e-mail, and incentives such as coupons, competitions and price discounts.
  • Media Buying
  • Involves getting a client's advertisement placed in the desired location or medium, with the client paying the best price possible.
  • Through-The-Line Advertising
  • 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 Media Buying 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 Media Buying 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 Media Buying 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 Media Buying Agencies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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