(MENAFN- iCrowdNewsWire) Advertising Agencies Market 2021 Global Industry Analysis, Opportunities, Size, Trends, Growth and Forecast 2030
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iCrowdNewswire Jan 11, 2021 10:22 AM ET
Advertising Agencies Market:
WiseGuyReports.com adds 'Global Advertising Agencies Market Research Report 2021 Analysis and Forecast 2030 reports to its database.
Executive Summary
The global advertising agencies market is expected to decline from $346.9 billion in 2019 to $346.5 billion in 2020 at a compound annual growth rate (CAGR) of -0.12%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $418.3 billion in 2023 at a CAGR of 6.48%.
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. The advertising agencies market is segmented into TV, digital, print, OOH (Out-of-Home Advertising), radio and other advertising services. Only goods and services traded between entities or sold to end consumers are included.
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North America was the largest region in the advertising agencies market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
In July 2018, Dentsu Inc., a company that offers marketing, event planning, event promotion, advertising planning, and other services, announced the acquisition of 100% stakes in Global Mind for an undisclosed amount. With the acquisition of Global Mind, Dentsu Inc's global network brand iProspect will align with Global Mind. The merger will add significant scale to iProspect Argentina as well as contribute key capabilities to the company's operations in Latin American markets. Global Mind is a full-service, cross-channel agency contributing to online and offline creative ad production, media planning and buying, digital paid search, display, social media management, SEO, programmatic and data & analytical services.
The advertising agencies market covered in this report is segmented by mode into online advertising; offline advertising. It is also segmented by type into TV; digital; radio; print; out-of-home (OOH); others and by end-user industry into banking, financial services, and insurance sector (BFSI); consumer goods and retail; government and public sector; IT & telecom; healthcare; media & entertainment.
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.
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 currently 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.
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.
Major players in the advertising agencies market are Dentsu Inc., WPP PLC, Omnicom Group Inc., Mayple and Publicis Groupe.
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