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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 | May 2016

Agents of growth: Downstream businesses' expanding budgets have lifted demand for services

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
WPP Group plc WPP Group plc market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Industry Analysis & Industry Trends

The industry has returned to growth during the past five years. Rebounding economic conditions and rising business confidence levels allowed downstream businesses to expand their marketing budgets, which enhanced demand for industry services. In addition, major events such as the 2012 London Olympics and the 2015 Rugby World Cup propelled demand for advertising services. However, demand for print media advertising dwindled during the period due to the significant fall in print media circulation. Households also endured household spending pressures. This restricted industry growth somewhat, as downstream businesses are generally more likely to increase spending on advertising activities when the purchasing power of consumers strengthens... 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 1:9.6, indicating that for every £1 spent on capital equipment, an estimated £9.6 is spent on labour. Labour costs are estimated to account for 20.2% of industry revenue in 2016-17 and, after purchases, constitute the industry's largest cost component. The.. 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
Creating and placing advertisements in mediaCreating and placing outdoor advertisementsCreating and placing online advertisementsProviding consulting and advisory services

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