$70.1bn
$X.Xbn
190k
14,273
$XX.Xbn
Advertising agencies have benefitted from rising consumer spending, corporate profit and per capita disposable income in recent years. Despite the outbreak of COVID-19 and falling advertising expenditure during the pandemic, revenue grew in 2020 as companies demanded creative services for COVID-19-focused marketing campaigns. As corporate profit returned following 2020, agencies were able to capitalize on an explosion of pent-up demand as businesses looked to target a consumer base with growing levels of disposable income. Industry-wide revenue has been growing at a CAGR of 2.7% over the past five years and is expected to total $70.1 billion in 2024, when revenue will jump by an estimated 1.9% and profit will inch toward 6.6%.<em> </em>
Industry revenue has grown at a CAGR of 2.7 % over the past five years, to reach an estimated $70.1bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Omnicom Group Inc. | 4,286.0 | 641.8 | 15.0 | |
Wpp Plc | 3,355.0 | 246.3 | 7.3 | |
Alliance Data Systems Corp | 1,255.5 | 62.8 | 5.0 |
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Advertising Agencies in the US
Industry revenue is measured across several distinct product and services lines, including Bundled creative and placement services, Creative services and Media buying and planning services. Bundled creative and placement services is the largest segment of the Advertising Agencies in the US.
The convenience of bundled creative and placement services has spurred growth
Advertising agencies create advertising campaigns for periodicals, newspapers, radio, TV and other media. Through in-house capabilities or subcontracting, ad agencies provide advice, creative services, account management, production of advertising material and media planning and buying (e.g. ad placement).
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NAICS 54181 - Advertising Agencies in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
A shift to digital advertising promoted growth for advertising agencies. As traditional media ad spending nosedived, digital advertising skyrocketed during the pandemic. Bran...
Learn about an industry's products and services, markets and trends in international trade.
Bundled creative and placement services are a hit with advertisers. These all-in-one solutions make it simpler for companies to launch campaigns, driving high demand for agen...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Advertising agencies are located close to key markets. Proximity to highly populated areas allows small agencies to provide services to various local businesses, contributing...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Specialized niche agencies keep the market competitive. No single agency can dominate because businesses need tailored advertising solutions. Small agencies thrive by focusin...
Learn about the performance of the top companies in the industry.
Only one company has amassed more than 5.0% of the market. Omnicron Group and Interpublic Group are gaining market share through their acquisition activity.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
While advertising agencies are largely self-regulatory, the Federal Trade Commission Act requires advertising to be truthful and nondeceptive. Misleading claims can lead to h...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Smaller advertising agencies struggle with profitability. They're locked in fierce price-based competition and don't have the expansive service offerings that boost profits f...
Including values and annual change:
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Key data sources in the US include:
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The market size of the Advertising Agencies in the US industry in United States is $70.1bn in 2024.
There are 14,273 businesses in the Advertising Agencies in the US industry in United States, which has grown at a CAGR of 2.6 % between 2019 and 2024.
The market size of the Advertising Agencies in the US industry in United States has been growing at a CAGR of 2.7 % between 2019 and 2024.
Over the next five years, the Advertising Agencies in the US industry in United States is expected to grow.
The biggest companies operating in the Advertising Agencies market in United States are Omnicom Group Inc., Wpp Plc and Alliance Data Systems Corp
Advertising campaigns through available mediums, such as TV, periodicals and digital and are part of the Advertising Agencies in the US industry.
The company holding the most market share in United States is Omnicom Group Inc..
The level of competition is moderate and increasing in the Advertising Agencies in the US industry in United States.