New York, Dec. 30, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Advertising Agencies Global Market Report 2022” – https://www.reportlinker.com/p06193698/?utm_source=GNW
, WPP PLC and Omnicom Group Inc.
The global advertising agencies market is expected to grow from $346.12 billion in 2021 to $383.67 billion in 2022 at a compound annual growth rate (CAGR) of 10.8%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $553.11 billion in 2026 at a CAGR of 9.6%.
The advertising agencies market consists of the sales of advertising services and related goods by entities (organizations, sole traders and partnerships) that plan, develop, create and manage advertisement and promotional activities in newspapers, radio, television, websites and social media sites.
The main types of advertising agencies are TV, digital, radio, print, Out-of-home (OOH), and others.A digital agency is primarily concerned with marketing the company’s products and services on the internet using website design and development, search engine optimization (SEO), content marketing, paid online advertising, social media, email marketing, and other services.
The various mode of advertising includes online advertising and offline advertising and are used by banking, financial services, and insurance sector (BFSI); consumer goods and retail; government and public sector; IT & telecom; healthcare; and media & entertainment.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
An increase in advertisement spending across industries is expected to drive the demand for the advertising agencies market.Video and mobile ads are major contributors to the increase in ad investment.
Digital advertising has recently surpassed total TV ad spending. For instance, according to the Global Digital Ad Trends report published by PubMatic, a digital advertising technology company, the US digital ad spend in 2019 was around $129.3 billion, constituting 54.2% of total spending ($238.56 billion). This shows that the US digital ad spending surpassed traditional media spending. Consumer Cellular, an American postpaid mobile network operator, spent under $100 million on advertising in digital, print, and national TV in the year 2019. The retail industry has the highest percentage of total spend on advertising. Therefore, the rise in advertisement spending is predicted to fuel the demand for the advertising agencies market.
The launch of artificial intelligence (AI) in advertising is gaining popularity in the advertising agencies market.Major players operating in the industry are continuously focused on introducing innovations and technologies to better serve the needs of consumers.
For instance, as of May 2019, according to a survey, 47% of advertisers are using artificial intelligence for audience targeting. It has been reported that several companies are focusing their AI capacities to streamline their sales process, sorting out “hot” leads from “cold” prospects, cutting sales lead considerably, and improving sales productivity.
The high cost of hiring an advertising agency, especially during tough economic times, is limiting the growth of the advertising agencies market.For instance, in smaller regions or markets, the cost to hire an advertising agency could vary anywhere from $95 to $225 per hour depending on the service and the skill of the person supplying that service.
The average cost for digital marketing services ranges from $2,500 to $12,000 per month for small-to-midsized businesses (SMBs). Thus, such high costs associated with hiring an advertising agency is likely to hinder the growth of the market over the forecast period.
In August 2021, Principle America Co. Ltd., a subsidiary of Tokyo-based digital marketing agency, Principle Company, acquired Eboost Consulting for an undisclosed amount. With this acquisition, Eboost will give its industry-leading social media advertising and PPC consulting services to Japanese companies growing into North America, as well as to help U.S. organisations expand globally into the Japanese and APAC sectors. Eboost Consulting is a US based digital marketing agency.
The countries covered in the advertising agencies market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.
Read the full report: https://www.reportlinker.com/p06193698/?utm_source=GNW
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