Ad Spot: Global Advertising Agencies Industry Market Research Report from IBISWorld has Been Updated
As the economic outlook brightens over the next five years, marketing budgets of downstream customers will expand and companies will begin to invest in new advertising campaigns; the industry will also continue to experience growth in emerging markets and digital media. For these reasons, industry research firm IBISWorld has updated a report on the Global Advertising Agencies industry to its growing report collection.
Los Angeles, CA (PRWEB) May 03, 2013
In 2013, the Global Advertising Agencies industry‘s revenue is expected to rise 4.3% to $109.4 billion, driven by increasing corporate profit and marketing budgets. “Although revenue is growing, the industry’s five-year performance was significantly slowed by the recession and its effect on consumer spending and corporate profit,” says IBISWorld industry analyst Kevin Culbert. In 2008 and 2009, many companies cut marketing budgets to mitigate profit declines, keeping global advertising agency revenue growing at a slow annualized rate of 1.9% in the five years to 2013.
While emerging markets like China and Latin America continue to grow, they are still relatively small compared with major markets like the United States and Europe. Growth in emerging markets was not enough to overcome the recessionary declines experienced in developed regions, though; as a result, revenue fell 9.3% in 2009. Fortunately the industry has since turned around due to growth in emerging markets and digital advertising. Additionally, as major players have made acquisitions in these areas, the industry has been consolidating, says Culbert. IBISWorld estimates that in the five years to 2013, the number of firms operating in the Global Advertising Agencies industry has fallen 0.4% annually on average to 29,514.
As the economic outlook brightens, marketing budgets will expand and companies will begin to invest in new advertising campaigns. The industry will continue to experience growth in emerging markets and digital media, which have both grown solidly in the past five years. Internet advertising in particular is expected to rise to 20.0% of total advertising spending in 2013, which is about double its share in 2007.
The size of major global players like Omnicom Group Inc., WPP Group PLC and The Interpublic Group of Companies Inc. will benefit them in gaining more exposure in emerging markets; their scale means they will be able to make acquisitions and form joint ventures rapidly. An established presence and credentials in a particular region will be a major advantage when competing for clients that are looking to export to that area. Opportunities for smaller firms lie in the digital arena, particularly in uncovering innovative ways to use new media to reach audiences. For more information, visit IBISWorld´s Global Advertising Agencies industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry create advertising campaigns and distribute them, such as through media placement. Services include advice, campaign planning, creative services, producing advertising material, and media planning and buying. Public relations and other specialized communications are excluded.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/5/prweb10684271.htm