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GL L6731-GL | Industry Report

Global Advertising Agencies Industry Data and Analysis

DD
Dmitry Diment
Analyst New York, United States July 2025

Advertising agencies have fared well globally as the proliferation of digital media has expanded ads' access to their target audiences. In developed markets, burgeoning economic activity and rising consumer spending have enabled ad spending from downstream industries to increase, even as emerging markets have lagged. At the same time, agencies have responded to the digital shift by overhauling practices, adopting data-driven and programmatic strategies as legacy media has declined in relevance. Consequently, industry revenue is forecast to grow at a CAGR of 3.8% to reach $444.7 billion in 2025.Although emerging markets in Asia, Latin America and Africa have expanded, they remain relatively small compared to major developed markets in the United States, Canada and Western Europe. Thus, economic activity in these developed economies affects ad agencies more profoundly than in developing regions, encouraging companies to invest in advertising campaigns in high-income, highly profitable markets. Recent years have seen digital marketing completely reshape global advertising, especially in advanced economies, where traditional media formats have continued to lose ground. And while emerging market growth has been slower to recover in the years since the pandemic, advertising spending in these regions has also rapidly shifted online. Agencies have raced to expand their digital expertise, investing in analytics and tech alliances while overhauling strategies to reach audiences. In Latin America and Europe especially, ad agencies have leveraged social and influencer marketing to reach younger, mobile-first consumers, deploying short videos, stories and local influencer content.While North America will remain the bedrock of developed market spending, major global advertising agencies will seek greater exposure in emerging markets in the coming years, leveraging their scale to make strategic acquisitions. Globally, agencies will invest in digital transformation, hiring workers in AI tech, data science and creative engineering to reach consumers. Agencies will focus on shoppable experiences as e-commerce integration grows, although the proliferation of data privacy concerns will necessitate that agencies rethink approaches to transparency, consent and ad targeting. Consequently, industry revenue is expected to climb at a CAGR of 3.5% to $529.0 billion through 2030. But ongoing opportunities will keep attracting new entrants into an industry with low entry barriers, rising price pressures that will limit profitability.

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What's included in this industry analysis

IBISWorld's research coverage on the Global Advertising Agencies industry includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.

About this industry

What's this industry report about?

The Global Advertising Agencies industry operates under the industry code L6731-GL. Companies in this industry create advertising campaigns and distribute them to various media outlets. Services include advice, ad campaign planning, creative services, advertising material production and media planning and buying. Public relations and other specialized communications are excluded from this industry. Related terms covered in the Global Advertising Agencies industry include below-the-line, traditional media, new media, digital agencies and viral marketing.

What's included in this industry?

Products and services covered in Global Advertising Agencies industry include TV and film advertisements, Print and Radio.

What companies are included in this industry?

The Global Advertising Agencies industry is highly fragmented with no companies holding a market share greater than 5%.

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 Global Advertising Agencies industry.

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 Global Advertising Agencies industry.

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 Global Advertising Agencies industry.

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 Global Advertising Agencies industry. 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 Global Advertising Agencies industry. 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 Global Advertising Agencies industry. 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 Global Advertising Agencies industry. 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 Global Advertising Agencies industry.

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Frequently Asked Questions

What is the market size of the Global Advertising Agencies industry in 2026?

The market size of the Global Advertising Agencies industry is $444.7bn in 2026.

How many businesses are there in the Global Advertising Agencies industry in 2025?

There are 450k businesses in the Global Advertising Agencies industry, which has grown at a CAGR of 3.8 % between 2020 and 2025.

How may import tariffs affect the Global Advertising Agencies industry?

The Global Advertising Agencies industry 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 Global Advertising Agencies industry?

The Global Advertising Agencies industry is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Global Advertising Agencies industry grown or declined over the past 5 years?

The market size of the Global Advertising Agencies industry has been growing at a CAGR of 3.8 % between 2020 and 2025.

What is the forecast growth of the Global Advertising Agencies industry over the next 5 years?

Over the next five years, the Global Advertising Agencies industry is expected to grow.

What does the Global Advertising Agencies industry include?

TV and film advertisements and Print advertisements are part of the Global Advertising Agencies industry.

How competitive is the Global Advertising Agencies industry?

The level of competition is high and increasing in the Global Advertising Agencies industry.

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