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Global Advertising Agencies - Market Research Report (2015-2030)

Dmitry Diment Dmitry Diment New York, United States Last Updated: July 2025 L6731-GL

Revenue

$444.7bn

2025

$444.7bn

Past 5-Year Growth

Profit

$XX.Xbn

Employees

2m

Businesses

450k

Wages

$XXX.Xbn

Global Advertising Agencies industry analysis

Advertising agencies have fared well globally as the proliferation of digital media has expanded ads' access to their target audiences. In developed markets, burgeoning economic activity and rising consumer spending have enabled ad spending from downstream industries to increase, even as emerging markets have lagged. At the same time, agencies have responded to the digital shift by overhauling practices, adopting data-driven and programmatic strategies as legacy media has declined in relevance. Consequently, industry revenue is forecast to grow at a CAGR of 3.8% to reach $444.7 billion in 2025.

Although emerging markets in Asia, Latin America and Africa have expanded, they remain relatively small compared to major developed markets in the United States, Canada and Western Europe. Thus, economic activity in these developed economies affects ad agencies more profoundly than in developing regions, encouraging companies to invest in advertising campaigns in high-income, highly profitable markets. Recent years have seen digital marketing completely reshape global advertising, especially in advanced economies, where traditional media formats have continued to lose ground. And while emerging market growth has been slower to recover in the years since the pandemic, advertising spending in these regions has also rapidly shifted online. Agencies have raced to expand their digital expertise, investing in analytics and tech alliances while overhauling strategies to reach audiences. In Latin America and Europe especially, ad agencies have leveraged social and influencer marketing to reach younger, mobile-first consumers, deploying short videos, stories and local influencer content.

While North America will remain the bedrock of developed market spending, major global advertising agencies will seek greater exposure in emerging markets in the coming years, leveraging their scale to make strategic acquisitions. Globally, agencies will invest in digital transformation, hiring workers in AI tech, data science and creative engineering to reach consumers. Agencies will focus on shoppable experiences as e-commerce integration grows, although the proliferation of data privacy concerns will necessitate that agencies rethink approaches to transparency, consent and ad targeting. Consequently, industry revenue is expected to climb at a CAGR of 3.5% to $529.0 billion through 2030. But ongoing opportunities will keep attracting new entrants into an industry with low entry barriers, rising price pressures that will limit profitability.

Trends and Insights

  • Digital advertising has reshaped the ad agency landscape, with targeted online campaigns outpacing traditional media. As spending moved online, agencies ramped up data-driven tactics that delivered stronger client results.
  • Bundled creative and placement services are gaining traction as more clients want comprehensive solutions from a single provider. Agencies offering everything from ad concepts to media buying are attracting businesses seeking convenience and cohesion in their campaigns.
  • Developed markets in North America and Europe face intense competition for consumers' discretionary spending, so advertisers invest heavily to influence buying decisions. These regions account for the most global investment, attracting the most ad spending as a result.
  • Staying competitive now requires agencies to adopt new and constantly evolving advertising techniques. As digital media gains popularity, it has intensified competition, pushing agencies to innovate faster and deliver more targeted, measurable campaigns across multiple platforms.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 3.8 % over the past five years, to reach an estimated $444.7bn in 2025.

Trends and Insights

Global advertising budgets shift was markets rebound and consumer habits evolve

  • Global advertising spending is projected to reach nearly $1.0 trillion in 2025 according to EMarketer, with the United States, Canada and Western Europe accounting for most activity. These regions have expanded substantively, driven by increased business marketing investment and digital adoption. The US leads in online ad expansion, and digital formats are expected to reach about 75.0% of global spend according to EMarketer.
  • Additional trends and insights available with purchase
Global Advertising Agencies
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Global advertising industry prepares for sustained digital dominance

  • Global advertising spending is expected to keep climbing at a rate substantially higher than general economic growth, signaling that the market size will continue to expand. Ad spend will continue to shift toward digital channels, which are likely to make up more than 68.0% of global ad expenditure according to EMarketer.

Biggest companies in the Global Advertising Agencies

Company
Market Share (%)
2025
Revenue ($m)
2025
Profit ($m)
2025
Profit Margin (%)
2025

There are no companies that hold a large enough market share in the Global Advertising Agencies industry for IBISWorld to include in this product.

Products & Services Segmentation

Global Advertising Agencies
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including TV and film advertisements, Print and Radio. TV and film advertisements is the largest segment of the Global Advertising Agencies.

Trends and Insights

Digital ad spending has drives the growth of creative services

  • Creative services and production form a key segment of the advertising industry, focused on developing and executing advertising content across multiple media channels. This includes everything from scripting and shooting television, online and radio commercials to designing print ads, billboards and digital graphics. The segment brings together copywriters, art directors, video producers and designers to shape brands' messaging and visual identity.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this industry create advertising campaigns and distribute them to various media outlets. Services include advice, ad campaign planning, creative services, advertising material production and media planning and buying. Public relations and other specialized communications are excluded from this industry.

What's included in this industry?

Products and services covered in the Global Advertising Agencies industry include TV and film advertisements, Print advertisements, Radio advertisements, Out-of-home (OOH) media, Mobile internet ads and Desktop internet ads.

Companies

Companies covered in the Global Advertising Agencies industry include .

Purchase this report to view all major companies in this industry.

Related Terms

Related terms covered in the Global Advertising Agencies industry include below-the-line, traditional media, new media, digital agencies and viral marketing.

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Digital advertising has reshaped the ad agency landscape, with targeted online campaigns outpacing traditional media. As spending moved online, agencies ramped up data-driven...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Bundled creative and placement services are gaining traction as more clients want comprehensive solutions from a single provider. Agencies offering everything from ad concept...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Developed markets in North America and Europe face intense competition for consumers' discretionary spending, so advertisers invest heavily to influence buying decisions. The...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Business Locations Charts
  • Share of global output by region in 2025
  • Share of population compared to output in each region in 2025
  • Data tables
  • Share of global output by region in 2025
  • Detailed analysis
  • Geographic spread of the industry across Global, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

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.

Analyst insights

Staying competitive now requires agencies to adopt new and constantly evolving advertising techniques. As digital media gains popularity, it has intensified competition, push...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Most companies in the global advertising industry run locally or regionally because effective campaigns rely on cultural insight. Familiarity with local language, values and ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    Advertising agencies rarely receive direct government aid, but programs like the EU's Digital Europe Programme and Australia’s Creative Futures Fund support innovation. Assoc...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2015-2030) 
    • Assistance historical data and forecast (2015-2030) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Most advertising agencies are small and run on tighter margins, so overall industry profitability remains modest. Larger agencies benefit from scale, broader client rosters a...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
    • Investment vs. share of economy

    Data tables

    • Cash Flow & Debt Service Ratios (2015-2030)
    • Revenue per Employee (2015-2030)
    • Revenue per Enterprise (2015-2030)
    • Employees per Establishment (2015-2030)
    • Employees per Enterprise (2015-2030)
    • Average Wage (2015-2030)
    • Wages/Revenue (2015-2030)
    • Establishments per Enterprise (2015-2030)
    • IVA/Revenue (2015-2030)
    • Imports/Demand (2015-2030)
    • Exports/Revenue (2015-2030)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2015-2030)
    • IVA (2015-2030)
    • Establishments (2015-2030)
    • Enterprises (2015-2030)
    • Employment (2015-2030)
    • Exports (2015-2030)
    • Imports (2015-2030)
    • Wages (2015-2030)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Global Advertising Agencies industry in 2025?

    The market size of the Global Advertising Agencies industry is $444.7bn in 2025.

    How many businesses are there in the Global Advertising Agencies industry in 2025?

    There are 450k businesses in the Global Advertising Agencies industry, which has grown at a CAGR of 3.8 % between 2020 and 2025.

    How may import tariffs affect the Global Advertising Agencies industry?

    The Global Advertising Agencies industry is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

    How may export tariffs affect the Global Advertising Agencies industry?

    The Global Advertising Agencies industry is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

    Has the Global Advertising Agencies industry grown or declined over the past 5 years?

    The market size of the Global Advertising Agencies industry has been growing at a CAGR of 3.8 % between 2020 and 2025.

    What is the forecast growth of the Global Advertising Agencies industry over the next 5 years?

    Over the next five years, the Global Advertising Agencies industry is expected to grow.

    What does the Global Advertising Agencies industry include?

    TV and film advertisements and Print advertisements are part of the Global Advertising Agencies industry.

    How competitive is the Global Advertising Agencies industry?

    The level of competition is high and increasing in the Global Advertising Agencies industry.

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    Key data sources globally include:

    • United Nations Comtrade
    • Organization for Economic Cooperation & Development
    • World Bank

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

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    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

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