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I AgreeAnalysis of Advertising Services market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global advertising services market is estimated at US$ 665 billion in 2022 and is further projected to expand at a CAGR of 7.2% to turn into a trillion-dollar market by the end of 2032.
Ad services accounted for approximately 30% share of global marketing spend by all enterprises in 2021. The proportion of ad spend is further anticipated to swell to 45% of overall marketing budgets within the next ten years.
Report Attributes |
Details |
---|---|
Advertising Services Market Size (2021A) |
US$ 620 Billion |
Estimated Market Value (2022E) |
US$ 664.6 Billion |
Forecasted Market Value (2032F) |
US$ 1,332 Billion |
Global Market Growth Rate (2022-2032) |
7.2% CAGR |
North America Market Share (2021) |
~47% |
East Asia Market Growth Rate (2022-2032) |
~8.4% CAGR |
United States Market Growth Rate (2022-2032) |
~6.9% CAGR |
Market Share of Top 5 Companies |
~10% |
Key Companies Profiled |
|
Know thy Competitors
Competitive landscape highlights only certain players
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Advertising plays an essential role in driving business growth. It amplifies the business effort and helps an organization reach the right audience and convert potential customers into paying customers.
To stay ahead in the competition and retain the existing consumer base, organizations significantly invest in advertising services, which is expected to.
Moreover, direct advertising presented in children's eyes and ears has dramatically increased as a result of the expansion of advertising channels targeting kids and the commercialization of kids' media use.
These numbers show a sharp rise above those from the 1970s. As such, increasing business spending on advertising is driving market growth.
From 2017 to 2021, the global advertising agency services market registered a CAGR of 6.7%, as per a new study by Fact.MR, a market research and competitive intelligence provider. Between 2022 and 2032, the market is projected to exhibit growth at 7.2% CAGR.
Market share analysis of advertising agency services based on end-use industry and region. Under the end-use industry segment, the consumer goods sub-segment dominates with 18% market share in 2022.
“Growing Popularity of Social Media Advertising”
The growing popularity of social media advertising is one of the major factors that will push market growth in the forthcoming period. Social media has changed from its original purpose of promoting social interaction and content sharing to now offering interactive avenues for both consumers and corporations. In addition to changing how Internet users communicate with one another, platforms such as Facebook, YouTube, Instagram, and Twitter have also revolutionized the way marketing and advertising communications reach highly relevant target audiences.
Social media's influence on consumer behavior extends from highlighting the importance of word-of-mouth recommendations to fostering stronger customer-business ties. Thus, the growing popularity of social media advertisements across the world is propelling market growth.
“Increasing Trend of Digital Advertising Worldwide”
As the Internet era has progressed, increased on-demand services from digital advertising firms have caused a shift in consumer focus away from traditional forms of media and toward more digital ones. Today, despite visiting a physical store, consumers are looking for products on online platforms, reading consumer reviews, and accessing the prices of products online. Through this, advertising agencies promote the customer’s business, products, and services to generate high brand awareness, sales, and more.
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“Presence of Strict Regulations Related to Advertising”
The presence of strict regulations on advertising that distorts the market by propagating false or deceitful claims is a major factor hampering market growth. Promises can persuade consumers to acquire products or services that they otherwise would not have opted to buy if they had not been misled by deceptive advertising. If this occurs, intervention by governments may be necessary to restore the market's integrity.
To stop false and deceptive advertising, it may take a variety of measures, such as targeted legal action and the creation of legislation to address practices that mislead consumers about the tangible qualities of products and services on the market.
For instance, The Federal Trade Commission (FTC) is established in the United States to oversee policies intended to safeguard consumers against unfair or misleading acts. The FTC seeks to prevent advertisers from making false, erroneous, or otherwise misleading advertising claims. The FTC can issue orders, enforceable through the courts, forcing marketers to stop their misleading or deceptive advertising when illegal statements are discovered.
“Growing Consumer Awareness about Digital Advertising”
While online advertisements used to be effective at getting users to click, over time, people developed greater resistance to their allure. Many Internet users deliberately block advertisements using browser extensions. Many others just decide to disregard them. Some ad formats are completely unpopular because they lead to distractions or make it difficult for users to access the required content fast. For example, some viewers will simply monitor the countdown clock while waiting to bypass the video ad and go straight to their film.
Moreover, the possibility of tracking down target customers is expected to be low when customers use specific search engines or social networks, which will hamper the online advertising process.
The United States advertising agency services market is estimated to evolve at a CAGR of 6.9% over the decade.
In the United States, advertisers have increasingly shown their interest in mobile advertisements due to the growing popularity of mobile devices and the proceeding shift from desktop computers.
With the rising usage of smartphones and the high penetration of the Internet in the United States, online shopping has gained significant popularity. This factor is attributed to the high demand for advertising services in the e-Commerce industry in the United States.
In China, advertising was adopted to promote majorly nonagricultural products and services. However, China’s moving focus to the manufacturing & service sector from agriculture has stimulated the demand for advertising services companies significantly. As a result, people and organizational spending on advertising have seen significant growth in the last few years in China.
Moreover, the Chinese population has seen a considerable shift in interest towards mobile applications, which has created a potential growth opportunity for in-app online advertising in the country.
The China advertising services agencies market is projected to progress at a CAGR of 8.5% through 2032.
The consumer goods segment accounts for a share of 18% in 2022 and is expected to be worth US$ 689.23 billion by 2032.
The consumer goods sector is highly competitive where consumer behavior plays an essential role in the sale of products. Marketers design advertisements through understanding consumer behavior and accordingly make advertisements for the desired impact. Surging investments by consumer goods companies in advertisements are expected to stimulate the demand for advertising services in the years ahead.
The social media advertisement segment accounts for a market share of 25% in 2022.
Social media advertisement is one of the popular categories of digital marketing, which utilizes social platforms such as Facebook, Twitter, and Instagram to deliver paid ads to target customers.
Adoption of virtual reality and augmented reality on social media platforms is one of the trending advertisement strategies being adopted by e-Commerce companies these days. It allows users to try-on products before buying them, which enhances the client experience.
Influencer collaboration is one of the fastest-growing social media advertising tactics. Brands collaborate with influencers to promote the content created by them that endorses their brands.
Prominent advertising service providers are WPP, Accenture Interactive, Black Propeller, BlueFocus Communication Group, Deloitte Digital, Funnel Boost Media, Hakuhodo, Hotspex Media, Interpublic Group of Cos., Jives Media, Madison Communication Pvt. Ltd., McCann Erickson India Pvt. Ltd., Mediaplus Group, Omnicom Group, Publicis Groupe, SeedX Inc., The Remnant Agency, VCCP, Zerotrillion, and Dentsu Inc.
The global advertising agency services market is expected to be highly competitive with the adoption of various strategic initiatives such as partnerships and acquisitions by key market players.
For instance :
Fact.MR has provided detailed information about the providers of advertising services positioned across regions, sales growth, and product offering expansion, in the recently published report.
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The global advertising agency services market is valued at US$ 664.6 billion in 2022.
Worldwide demand for advertising services is anticipated to reach US$ 1,332 billion by 2032-end.
From 2017 to 2021, revenue from advertising services increased at 6.7% CAGR.
North America leads the global market accounting for 47% market share.
Social media advertisements currently account for 25% market share.