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Advertising Agencies in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Advertising Agencies Market Research Report | SIC M73.110 | Mar 2014

Industry bypass: Strong competition from outside the industry restricts revenue growth

IBISWorld’s Advertising Agencies market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Omnicom Group Inc Omnicom Group Inc market share
Publicis Groupe SA Publicis Groupe SA market share
WPP Group plc WPP Group plc market share
Industry Statistics & Market Size
Revenue
£18bn
Annual Growth 09-14
-1.0%
Annual Growth 14-19
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Profit
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Employment
95,006
Businesses
14,530
Industry Analysis & Industry Trends

The Advertising Agencies industry has endured a difficult five years. Since the downturn began in 2008-09, businesses have cut back sharply on their advertising expenses, causing revenue to contract in 2008-09 and 2009-10. The industry recovered temporarily in 2010-11, but remained stagnant in the following year as economic conditions weakened. The London Olympic Games increased demand in 2012-13, which enabled revenue to grow moderately. Despite the challenging conditions, online advertising revenue grew strongly during the past five years as consumers began assessing more media content online through tablets, smartphones and computers. However, the benefits to the industry were curtailed due to industry operators losing market share to firms operating outside the industry... purchase to read more

Industry Report - Industry Investment Chapter

Capital intensity is determined by comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs indicate high investment in depreciable assets like buildings and equipment, meaning high capital intensity. Conversely, comparatively high wage costs indicate high labour intensity.

The Advertising Agencies industry exhibits a low level of capital intensity. This is reflected by its capital-to-labour ratio of 1:9.19, indicating that for every £1 spent on capital equipment, an estimated £9.19 is spent on labour. Labour costs are estimated to account for 19.3% of industry revenue in 2013-14 and, after purchases, constitute the industry's largest cost component... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Advertising Agencies Industry?

Advertising agencies produce, place and provide advice about advertising material across a range of media, including TV, print, radio and the internet. They also advertise at the point of sale, on billboards and using direct mail promotional campaigns. The industry excludes public relations agencies, media sales representatives and market researchers.

Industry Products
TV and radio advertisingPrint media advertisingOnline advertisingOut-of-home advertisingProfessional consulting
 
Industry Activities
Planning advertising campaignsCreating and placing advertisements in mediaCreating and placing outdoor advertisementsPromoting productsDistributing advertising material and samplesDirect mail advertisingConsulting and advising on marketing


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