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Advertising Agencies Industry Analysis

Identify industry changes, evaluate the market size, market outlook, trends, key players, and growth opportunities.

Contents Standard Report Premium Report
Industry Overview & Outlook . .
- Market Size
(industry trends)
. .
- Market Forecast   .
- Products/Services Breakdown   .
- Revenue per State . .
$ Financial Metrics . .
$ Salary & Compensation Benchmarks . .
@ Key Companies   .
- Industry News & Innovators   .
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2018 Market Analysis & Industry Outlook: Advertising Agencies

Overview: the U.S. Advertising Agencies Industry

This section provides answers to key questions about the industry:

  1. What is the total market size (industry revenue)?
  2. What is the industry outlook?
  3. Market Analysis: Is the market growing or declining, and how quickly?
  4. Are long-term forecasts positive or negative?
  5. What is the average company size in the industry?
  6. How many companies are in the industry?

Market Size & Industry Statistics

The total U.S. industry market size for Advertising Agencies: Industry statistics cover all companies in the United States, both public and private, ranging in size from small businesses to market leaders. In addition to revenue, the industry market analysis shows information on employees, companies, and average firm size.

Investors, banks, and business executives use growth rates and industry trends to understand the market outlook and opportunity.

market size 2018
Charts and graphs can be copied to Microsoft Word and Powerpoint presentations.

Statistics 2012        2013        2014        2015        2016        2017
Market Size
(Total Sales/Revenue)

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Total Firms
Total Employees
Average Revenue Per Firm
Average Employees Per Firm
Statistics Source: U.S. Census, AnythingResearch Market Analysis

Market Forecast

Market forecasts show the long term industry outlook and future growth trends. The following five-year demand forecast projects both short-term and long-term trends.

market forecast

Forecast / Industry Outlook 2017 2018 2019 2020 2021 2022
Market Forecast ($ millions)
Projected Industry Growth Rate (%)
Source: AnythingResearch Economic Analysis

Product & Services Breakdown

Research products and services in the Advertising Agencies industry generating sales. Note that products are broken into categories with different levels of classification.

Product DescriptionNumber of Companies Sales ($ millions) Percent of Total Sales

Industry Total

Advertising Placement Services (Include Bundled Placement And Creative Services.)

Advertising Creative Services Billed Separately (Include Graphic Design Services.)

Sales Promotion Services

Direct Marketing Services

Public Relations Services

Full Public Relations Services

Media Planning And/Or Buying Services

Full Media Planning And Buying Services

Media Planning Services

Media Buying Services

Media Representation Services

Sales Agent Services For Advertising Time On Television

Direct Mail Advertising Services

Print Services For Direct Mail Advertising Materials

Coordination Of Production And Delivery Of Premiums (I.E., Advertising Specialties)

Other Services Related To Advertising

Marketing Research Services

All Other Receipts

All Other Operating Receipts

U.S. Geographic Distribution: Revenue Statistics by State

Market Size by State ($ millions) indicates how the industry's competition is distributed throughout the country. State-level information can identify areas with higher and lower industry market share than average.

U.S. map by state

Advertising Agencies Industry Price Trends

Rise and fall in market prices are affectedd by supply, demand, and the cost of goods/services sold. Higher demand or COGS will put upward price pressure on prices. Higher competition among Advertising Agencies companies will put a downward pressure on prices. The chart shows how prices are changing within the industry, month-to-month over the last three years.

example price index trendline

Income Statement (Average Financial Metrics)

Financial metrics provide a snapshot view of a benchmark "average" company. Key business metrics show revenue and operating costs. The data collected covers both public and private companies.

Industry AveragePercent of Sales
(Industry Benchmark)
Total Revenue

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Operating Revenue
Cost of Goods Sold
Gross Profit

Operating Expenses
Pension, profit sharing plans, stock, annuity
Rent paid on business property
Charitable Contributions
Domestic production activities deduction
Compensation of officers
Salaries and wages
Employee benefit programs
Taxes and Licenses
Bad Debts
Other Operating Expenses
Total Operating Expenses
Operating Income
Non-Operating Income
EBIT (Earnings Before Interest and Taxes)
Interest Expense
Earnings Before Taxes
Income Tax
Net Profit
Source: AnythingResearch Analysis of U.S. federal statistics

Financial Ratio Analysis

Financial ratio information can be used to benchmark how a Advertising Agencies company compares to its peers. Accounting statistics are calculated from the industry-average for income statements and balance sheets.

Profitability & Valuation RatiosIndustry Average
Company valuation can be measured based on the firm's own performance, as well as in comparison against its industry competitors. These metrics show how the average company in the Advertising Agencies industry is performing.
Profit Margin
Gross Profit Margin, Operating Profit Margin, and Net Profit Margin. Show company earnings relative to revenues.
Return on Equity (ROE)
Return on Equity (ROE) is net income as a percentage of shareholders' equity. Shareholders' Equity is defined as the company's total assets minus total liabilities. ROE shows how much profits a company generates with the money shareholders invested (or with retained earnings).
Return on Assets (ROA)
Return on Assets (ROA) is net income relative to total assets. The market research on Advertising Agencies measures how efficiently the company leverages its assets to generate profit. ROA is calculated as Net Income divided by Total Assets.

Liquidity RatiosIndustry Average
Bankers and suppliers use liquidity to determine creditworthiness and identify potential threats to a company's financial viability.
Current Ratio
Measures a firm's ability to pay its debts over the next 12 months.
Quick Ratio (Acid Test)
Calculates liquid assets relative to liabilities, excluding inventories.

Efficiency Ratios - Key Performance IndicatorsIndustry Average
Measure how quickly products and services sell, and effectively collections policies are implemented.
Receivables Turnover Ratio
If this number is low in your business when compared to the industry average in the research report, it may mean your payment terms are too lenient or that you are not doing a good enough job on collections.
Average Collection Period
Based on the Receivables Turnover, this estimates the collection period in days. Calculated as 365 divided by the Receivables Turnover
Inventory Turnover
A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort.
Fixed-Asset Turnover
Generally, higher is better, since it indicates the business has less money tied up in fixed assets for each dollar of sales revenue.

Compensation & Salary Surveys for Employees

Compensation statistics provides an accurate assessment of industry-specific jobs and national salary averages. This information can be used to identify which positions are most common, and high, low, and average annual wages.

TitlePercent of WorkforceBottom Quartile Average (Median) SalaryUpper Quartile
Management Occupations 11%

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Chief Executives0%
General and Operations Managers4%
Advertising, Marketing, Promotions, Public Relations, and Sales Managers 5%
Business and Financial Operations Occupations 10%
Business Operations Specialists 8%
Arts, Design, Entertainment, Sports, and Media Occupations 23%
Art and Design Workers 11%
Designers 7%
Media and Communication Workers 10%
Public Relations Specialists 8%
Public Relations Specialists 8%
Sales and Related Occupations 25%
Sales Representatives, Services 16%
Advertising Sales Agents 13%
Advertising Sales Agents 13%
Other Sales and Related Workers 7%
Demonstrators and Product Promoters 6%
Office and Administrative Support Occupations 20%
Other Office and Administrative Support Workers 7%
Source: Bureau of Labor Statistics

Advertising Agencies Industry Market Share [PREMIUM]

Largest companies in the industry and related industries, with private company revenue estimates.

CompanyAddressRevenue Estimate

Innovation News

  • RMD Group trademarks "RMD GARAGE" - Automobile and truck parts and accessories - 01/24/2018
  • Professional Diversity Network trademarks "W INTERNATIONAL ASSOCIATION OF WOMEN" - Association services - 01/19/2018
  • Spectrio trademarks "CLOUDSTUDIO" - Providing a web site featuring technology that enables users to create and configure voice messages, telephonic greetings, messages on hold and request professional voiceover services; Providing temporary use of a non-downloadable web application for creating and configuring voice messages, telephonic greetings, messages on hold and request professional voiceover services; Software as a service (SAAS) services featuring software for creating and configuring voice messages, telephonic greetings, messages on hold and request professional voiceover services - 01/06/2018
  • Professional Diversity Network raises $3 million in funding. - 01/27/2017

  • Top Innovators

    CompanyInnovation Score
    Professional Diversity Network

    Additional companies, details and innovation scoring in the full report.

    Latest Industry News

    • Pitch update: Tourism Ireland creates agency shortlist, plus General Mills, Hovis and more - Topdeck Travel, the specialist tour operator for people aged 18 to 39, is looking for a creative ad agency to help reinvigorate its brand. There is no incumbent for the brand, which was acquired by Flight Centre in 2014. Ingenuity is helping TopDeck with ... (01/11/2018)
    • What you need to know in advertising today - Taco Bell's Belluminati ad campaign is supposed to highlight the chain's dollar ... which awarded the lion’s share of its account to Omnicom in 2016 and launched a dedicated agency called We Are Unlimited. (01/11/2018)
    • Here Are the 4 Creative Agencies That Ruled YouTube in 2017 - The ad arguably became an example of what socially conscious advertising looks like when done well. When was the last time you noticed the triangle player in an orchestra? The Martin Agency took an often neglected instrument and gave it a moment in 2017. (01/11/2018)
    • This IKEA ad doubles as a pregnancy test - Need a crib? More importantly, need to know if you need a crib? IKEA has you covered. Its latest print ads, from Swedish advertising agency Åkestam Holst, contain a swatch created with chemicals similar to those found in at-home pregnancy tests. (01/11/2018)
    • Ad Agency Version 2018: Three Primary Models Are Emerging - As we enter 2018, there’s little doubt that the ad agency industry is undergoing serious change. We’re experiencing a transformation in the business models we’ve used for the last few decades, a new age marked by what I call agency polarity. (01/11/2018)
    • Ikea ad doubles as an at-home pregnancy test—and works the same way (think yellow) - A positive test result will also reveal a hefty discount on the crib. The ad was created by Swedish advertising agency Akestam Holst and ran in a Swedish women's magazine. Even a big discount needs an eye-catching ad campaign. Ikea's new magazine ad is ... (01/11/2018)
    • How Public Relations Agencies Are Becoming Top Creators Of Digital Video Content - Here’s how and why this phenomenon is unfolding. With traditional marketing, advertising agencies and PR agencies had clear and delineated roles. Ad agencies conceived, created, and produced ads, while PR agencies reinforced a firm’s marketing message ... (01/11/2018)
    • Behind Portland ad agency R2C's $126M deal with LendingTree - Portland advertising agency R2C last month inked a major deal with LendingTree Inc. The North Carolina-based online lender had been in search of a new media partner to work with it through a period of rapid growth — and to work with a piece of its $126.5 ... (01/10/2018)
    • GE Appliances Seeks Creative Agency 18 Months After Sale to Haier - Credit: GE Appliances Haier-owned GE Appliances has issued an RFP for an agency to support creative services across its portfolio of brands and to help reposition and expand Haier in North America, according to a document obtained by Ad Age. The review ... (01/10/2018)
    • Former Olson exec forms independent marketing agency - A little more than a year after leaving the helm of Minneapolis ad agency ICF Olson, advertising veteran Margaret Murphy has started her own marketing company Bold Orange. “I think the world can be a little bolder,” Murphy said, in an interview Tuesday. (01/10/2018)

    Government Contracts

    In 2016, the federal government spent a total of $689,067,555 on Advertising Agencies. It has awarded 1,731 contracts to 156 companies, with an average value of $4,417,100 per company.   

    Top government vendors:

    CompanyFederal ContractsTotal Award Amount

    Growth Opportunities / Competitive Threats

    Companies in other industries may also sell similar products. Since there is an overlap in the customer base, there may be an opportunity for companies in Advertising Agencies to sell additional products/services offered by these adjacent industries. Alternatively, these industries may identify further products in this industry to target. Products most at risk are those with the highest profit margins and lowest barriers to entry.

    The following industries are competing channels for sales of similar products/services.

    Advertising Agency Services
    Competing IndustrySales Relative to Advertising AgenciesOpportunity/Threat

    Sales from other industries of Advertising Agency Services are less than those from Advertising Agencies. This may mean that other channels are a competitive risk of increasing their Advertising Agency Services sales, taking market share from this industry.
    Advertising Agency Services Product Sales Report

    Media Planning And/Or Buying Services
    Competing IndustrySales Relative to Advertising AgenciesOpportunity/Threat
    Media Buying Agencies
    Direct Mail Advertising Competing industry
    Public Relations Agencies Competing industry

    Sales from other industries of Media Planning And/Or Buying Services are less than those from Advertising Agencies. This may mean that other channels are a competitive risk of increasing their Media Planning And/Or Buying Services sales, taking market share from this industry.
    Media Planning And/Or Buying Services Product Sales Report

    Public Relations Services
    Public Relations Services Product Sales Report

    Segments classified within this market research report

    This industry market research report includes companies whose primary business is any of the following:
    Advertising agencies, Advertising agency consulting services, etc.

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