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Advertising Agencies in Australia Industry Data and Analysis
The Advertising Agencies industry in Australia has experienced mixed performance over the past few years, driven by rapidly changing consumer preferences and fluctuations in economic conditions. Demand for traditional media, particularly print and broadcast advertising, has fallen significantly, while online and digital advertising has recorded strong growth, prompting sectorwide restructuring. Rising inflation and elevated interest rates weakened business confidence between 2021-22 and 2023-24, leading to temporary reductions in advertising budgets among many downstream clients and contributing to industrywide revenue falling at an annualised 0.2% from 2019-2020 to 2024-25. Revenue is projected to partially recover in 2024-25, growing 1.3% to reach $3.9 billion, supported by improvements in business confidence. Profit margins have expanded in recent years, driven by increased efficiencies. Agencies are increasingly using AI-driven advertising optimisation and digital billboard technologies to achieve higher returns on campaign budgets. Advertising agencies have pursued mergers and acquisitions to boost integrated service offerings, digital capabilities and competitive positions amid ongoing disruption from digital platforms. The December 2024 merger between Omnicom and Interpublic illustrates a trend towards greater market concentration and enhanced global competitiveness. Some businesses have begun intensifying competitive pressures on advertising agencies by adopting in-house advertising models, exemplified by Bunnings' March 2025 establishment of its internal advertising agency, Hammer Media.
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What's included in this industry analysis
IBISWorld's research coverage on the Advertising Agencies industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.
About this industry
What's this industry report about?
The Advertising Agencies industry in Australia operates under the ANZSIC industry code M6941. 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. Related terms covered in the Advertising Agencies industry in Australia include below-the-line advertising, above-the-line advertising, mass media, through-the-line, spam and sms.
What's included in this industry?
Products and services covered in Advertising Agencies industry in Australia include Print advertising campaigns, Broadcast advertising campaigns and Online and mobile advertising campaigns.
What companies are included in this industry?
Companies covered in the Advertising Agencies industry in Australia include Omnicom Media, Multi Market Services Australia and WPP AUNZ.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Advertising Agencies industry in Australia.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Advertising Agencies industry in Australia.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Advertising Agencies industry in Australia.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Advertising Agencies industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Advertising Agencies industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Advertising Agencies industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Advertising Agencies industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Advertising Agencies industry in Australia.
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Frequently Asked Questions
What is the market size of the Advertising Agencies industry in Australia in 2026?
The market size of the Advertising Agencies industry in Australia is $3.9bn in 2026.
How many businesses are there in the Advertising Agencies industry in Australia in 2025?
There are 9,512 businesses in the Advertising Agencies industry in Australia, which has grown at a CAGR of 2.1 % between 2020 and 2025.
How may import tariffs affect the Advertising Agencies industry in Australia?
The Advertising Agencies industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Advertising Agencies industry in Australia?
The Advertising Agencies industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
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 0.2 % between 2020 and 2025.
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 industry in Australia?
The biggest companies operating in the Advertising Agencies industry in Australia are Omnicom Media, Multi Market Services Australia and WPP AUNZ
What does the Advertising Agencies industry in Australia include?
Online and mobile advertising campaigns and Broadcast advertising campaigns are part of the Advertising Agencies industry in Australia.
Which companies have the highest market share in the Advertising Agencies industry in Australia?
The company holding the most market share in the Advertising Agencies industry 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.
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