Global Advertising Agencies Industry Market Research Report from IBISWorld has Been Updated
Although growth is imminent, the Global Advertising Agencies industry's five-year performance was significantly slowed by the recession and its effect on consumer spending and corporate profits. In 2008 and 2009, many companies cut marketing budgets in order to mitigate profit declines. As the economic outlook brightens over the next five years, 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. For these reasons, industry research firm IBISWorld has updated a report on the Global Advertising Agencies industry in its growing industry report collection.
Los Angeles, CA (PRWEB) November 03, 2012
In 2012, Global Advertising Agencies industry revenue is expected to rise 5.5% to $105.2 billion, driven by increasing corporate profit and marketing budgets. Although growth is imminent, the industry's five-year performance was significantly slowed by the recession and its effect on consumer spending and corporate profit. In 2008 and 2009, many companies cut marketing budgets to mitigate profit declines. Consequently, revenue is expected to increase at an annualized rate of just 1.6% in the five years to 2012, according to IBISWorld industry analyst Kevin Culbert.
While emerging markets, including China and Latin America, continue to grow, they are still relatively small compared with major markets, such as the United States and Europe. Growth in emerging markets was not enough to overcome the recessionary declines experienced in developed regions. As a result, Global Advertising Agencies industry revenue fell 9.2% in 2009. However, the industry is poised to return to growth. Reflecting growth in emerging markets and digital advertising, major players have made acquisitions in these areas, contributing to slow enterprise growth. IBISWorld estimates that in the five years to 2012, the number of firms operating in this industry has increased just 0.3% annually on average to 28,961, Culbert says.
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 is expected to rise to 20% of total advertising spending in 2012, which is about double its share in 2007.
The size of major global players 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. Revenue is expected to grow through 2017. The Global Advertising Agencies industry has a low level of industry concentration, with the vast majority of agencies operating on a local basis. 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, producting 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 industry information and analysis. 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/prweb2012/11/prweb10090960.htm