Advertising Agencies in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: December 2023
ANZSIC M6941Revenue
$3.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
18,601
Businesses
9,568
Wages
$X.Xbn
Advertising Agencies in Australia industry analysis
The Advertising Agencies industry provides advertising services to clients across all types of media. The industry has been volatile in recent years, spurred by shrinking print and broadcast media demand and a challenging operating environment. Demand for advertising agency services slumped in response to the COVID-19 pandemic as negative business confidence and economic uncertainty prompted many businesses to tighten their marketing budgets. Advertising agencies are struggling despite clients spending more on online and digital advertising and a growing focus on customised online advertising based on user characteristics and website preferences and use. Intense price-based competition and mounting wage and purchase costs are squeezing profit margins. Overall, revenue is projected to inch downward an annualised 0.5% over the five years through 2023-24, to $3.6 billion. This includes an anticipated 1.2% drop in 2023-24, as negative business confidence and a slump in internet publishing and broadcasting weigh on demand for advertising services.
Trends and Insights
- The transition to digital advertising is underpinning growth for advertising agencies. Digital advertising services are surging at the expense of traditional print and broadcast advertising services.
- The Advertising Agencies industry’s two traditional services are advertising campaigns through broadcasting and print media. However, online advertising and internet campaigns are now more popular than these advertising methods.
- Advertising agencies are primarily located in major cities. This is because advertising firms tend to be located near decision-makers in their target markets and nearby business activity centres.
- Competition for advertising agencies is on the rise. Agencies compete based on price, reputation, branding, and creativity, on top of the threat of client businesses' bringing in-house advertising services.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 0.5 % over the past five years, to reach an estimated $3.6bn in 2023.
Trends and Insights
Advertising agencies have faced several challenges in recent years
- Negative business confidence and a drop in household consumption expenditure in response to the COVID-19 pandemic hindered demand as many clients reduced their marketing budgets. This led to a decline in advertising agencies’ revenue over the two years through 2020-21.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Growth opportunities will be plentiful for advertising agencies over the coming years
- Improving business confidence and growth in total business profit over the coming years are forecast to fuel advertising agencies’ expansion and demand for advertising services.
Biggest companies in the Advertising Agencies in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Omnicom Media | 311.9 | |
WPP AUNZ | 300.4 | |
Multi Market Services Australia | 258.0 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Print advertising campaigns, Broadcast advertising campaigns and Online and mobile advertising campaigns. Print advertising campaigns is the largest segment of the Advertising Agencies in Australia.
Trends and Insights
Growing digital media use has bolstered online and mobile advertising campaigns
- Online and mobile advertising campaigns mainly use below-the-line advertising methods. Agencies offer customised website, smartphone and tablet advertising campaigns, website and interactive application development and marketing tools like search engine optimisation.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Media Buying Agencies in Australia
- Public Relations Services in Australia
Complementors
- Newspaper Publishing in Australia
- Magazine and Directory Publishing in Australia
- Radio Broadcasting in Australia
- Free-to-Air Television Broadcasting in Australia
International industries
- Global Advertising Agencies
- Advertising Agencies in the US
- Direct Mail Advertising in the US
- Digital Advertising Agencies in the US
- Advertising Agencies in Canada
Table of Contents
About this industry
Industry definition
Industry companies provide clients with advertising services, such as creating advertising campaigns and materials. Industry revenue relates to the revenue received from developing and producing advertising campaigns rather than revenue from client billings.
What's included in this industry?
Online and mobile advertising campaignsBroadcast advertising campaignsPrint advertising campaignsBillboard advertising campaignsCinema advertisingAerial advertising services Sample distribution servicesCompanies
Omnicom MediaWPP AUNZMulti Market Services AustraliaPurchase this report to view all 7 major companies in this industry.
Related Terms
BELOW-THE-LINE ADVERTISINGABOVE-THE-LINE ADVERTISINGMASS MEDIATHROUGH-THE-LINESPAMSMSIndustry Code
ANZSIC 6940 - Advertising Agencies in Australia
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
The transition to digital advertising is underpinning growth for advertising agencies. Digital advertising services are surging at the expense of traditional print and broadc...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
The Advertising Agencies industry’s two traditional services are advertising campaigns through broadcasting and print media. However, online advertising and internet campaign...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
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
Advertising agencies are primarily located in major cities. This is because advertising firms tend to be located near decision-makers in their target markets and nearby busin...
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 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, 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
Competition for advertising agencies is on the rise. Agencies compete based on price, reputation, branding, and creativity, on top of the threat of client businesses' bringin...
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 2018-2023
- 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
Larger advertising agencies are in a better position than smaller firms to service major clients. Major clients tend to require extensive advertising campaigns that smaller a...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Omnicom Media's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of WPP AUNZ's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Multi Market Services Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for Omnicom Media, and factors influencing its performance in the industry
- Description and key data for WPP AUNZ, and factors influencing its performance in the industry
- Description and key data for Multi Market Services Australia, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Advertising agencies receive some assistance through the Australian Communications and Media Authority and various industry associations. For example, industry associations l...
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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
Increased cost pressures and competition from other forms of marketing are weakening profit margins. Agencies are facing rising wage costs and increased input costs because o...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
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.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Advertising Agencies industry in Australia in 2024?
The market size of the Advertising Agencies industry in Australia is $3.6bn in 2024.
How many businesses are there in the Advertising Agencies in Australia industry in 2023?
There are 9,568 businesses in the Advertising Agencies industry in Australia, which has grown at a CAGR of 2.6 % between 2018 and 2023.
Has the Advertising Agencies industry in Australia grown or declined over the past 5 years?
The market size of the Advertising Agencies industry in Australia has been declining at a CAGR of 0.5 % between 2018 and 2023.
What is the forecast growth of the Advertising Agencies industry in Australia over the next 5 years?
Over the next five years, the Advertising Agencies industry in Australia is expected to grow.
What are the biggest companies in the Advertising Agencies market in Australia?
The biggest companies operating in the Advertising Agencies market in Australia are Omnicom Media, WPP AUNZ and Multi Market Services Australia
What does the Advertising Agencies in Australia include?
Online and mobile advertising campaigns and Broadcast advertising campaigns are part of the Advertising Agencies industry.
Which companies have the highest market share in the Advertising Agencies in Australia?
The company holding the most market share in Australia is Omnicom Media.
How competitive is the Advertising Agencies industry in Australia?
The level of competition is high and increasing in the Advertising Agencies industry in Australia.
