The global advertising agencies market is expected to grow from $346.12 billion in 2021 to $383.67 billion in 2022 at a compound annual growth rate (CAGR) of 10.8%. The market is expected to reach $553.11 billion in 2026 at a CAGR of 9.6%.
Major players in the advertising agencies market are Caveni Digital Solutions, Socialiency Advertising, Tegra, BrandBurp Digital, Plan Z, Titan SEO Group, Breakneck Creative, Thevisiontech, Dentsu Inc., WPP PLC and Omnicom Group Inc.
The advertising agencies market consists of the sales of advertising services and related goods by entities (organizations, sole traders and partnerships) that plan, develop, create and manage advertisement and promotional activities in newspapers, radio, television, websites and social media sites.
An increase in advertisement spending across industries is expected to drive the demand for the advertising agencies market. Video and mobile ads are major contributors to the increase in ad investment. Digital advertising has recently surpassed total TV ad spending.
For instance, according to the Global Digital Ad Trends report published by PubMatic, a digital advertising technology company, the US digital ad spend in 2019 was around $129.3 billion, constituting 54.2% of total spending ($238.56 billion). This shows that the US digital ad spending surpassed traditional media spending.
Consumer Cellular, an American postpaid mobile network operator, spent under $100 million on advertising in digital, print, and national TV in the year 2019. The retail industry has the highest percentage of total spend on advertising. Therefore, the rise in advertisement spending is predicted to fuel the demand for the advertising agencies market.
The launch of artificial intelligence (AI) in advertising is gaining popularity in the advertising agencies market. Major players operating in the industry are continuously focused on introducing innovations and technologies to better serve the needs of consumers. For instance, as of May 2019, according to a survey, 47% of advertisers are using artificial intelligence for audience targeting. It has been reported that several companies are focusing their AI capacities to streamline their sales process, sorting out "hot" leads from "cold" prospects, cutting sales lead considerably, and improving sales productivity.
The high cost of hiring an advertising agency, especially during tough economic times, is limiting the growth of the advertising agencies market. For instance, in smaller regions or markets, the cost to hire an advertising agency could vary anywhere from $95 to $225 per hour depending on the service and the skill of the person supplying that service. The average cost for digital marketing services ranges from $2,500 to $12,000 per month for small-to-midsized businesses (SMBs). Thus, such high costs associated with hiring an advertising agency is likely to hinder the growth of the market over the forecast period.
In August 2021, Principle America Co. Ltd., a subsidiary of Tokyo-based digital marketing agency, Principle Company, acquired Eboost Consulting for an undisclosed amount. With this acquisition, Eboost will give its industry-leading social media advertising and PPC consulting services to Japanese companies growing into North America, as well as to help U.S. organisations expand globally into the Japanese and APAC sectors. Eboost Consulting is a US based digital marketing agency.
Key Topics Covered:
1. Executive Summary
2. Advertising Agencies Market Characteristics
3. Advertising Agencies Market Trends And Strategies
4. Impact Of COVID-19 On Advertising Agencies
5. Advertising Agencies Market Size And Growth
5.1. Global Advertising Agencies Historic Market, 2016-2021, $ Billion
5.1.1. Drivers Of The Market
5.1.2. Restraints On The Market
5.2. Global Advertising Agencies Forecast Market, 2021-2026F, 2031F, $ Billion
5.2.1. Drivers Of The Market
5.2.2. Restraints On the Market
6. Advertising Agencies Market Segmentation
6.1. Global Advertising Agencies Market, Segmentation By Mode, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
6.2. Global Advertising Agencies Market, Segmentation By Type, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
6.3. Global Advertising Agencies Market, Segmentation By End-User Industry, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Banking, Financial Services, and Insurance Sector (BFSI)
Consumer Goods and Retail
Government and Public Sector
IT & Telecom
Media & Entertainment
7. Advertising Agencies Market Regional And Country Analysis
7.1. Global Advertising Agencies Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
7.2. Global Advertising Agencies Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Caveni Digital Solutions
Titan SEO Group
Omnicom Group Inc.
Blue Label Labs
Independent Group of Companies
Experian Marketing Services
Interpublic Group Of Companies
Crispin Porter + Bogusky (CP+B)
Butler, Shine, Stern & Partners (BSSP)
For more information about this report visit https://www.researchandmarkets.com/r/fzlqmx
View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005522/en/
Laura Wood, Senior Press Manager
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