Media Buying Services Market

Media Buying Services Market Outlook (2022-2032)

The global media buying services market stands at US$ 69 billion in 2022 and is slated to expand at a CAGR of 6.2% to reach US$ 125.9 billion by the end of 2032.

Media buying services accounted for nearly 12% share of the global advertising industry in 2021.

Report Attributes	Details
Media Buying Services Market Size (2021A)	US$ 65 Billion
Estimated Market Value (2022E)	US$ 69 Billion
Forecasted Market Value (2032F)	US$ 125.9 Billion
Global Market Growth Rate (2022-2032)	6.2% CAGR
North America Market Share (2021)	~42%
East Asia Market Growth Rate (2022-2032)	~6.7% CAGR
United States Market Growth Rate (2022-2032)	~6.3% CAGR
Market Share of Top 10 Companies	Higher Single Digit
Key Companies Profiled	Anderson Collaborative ARSENL ATTN Agency Booyah Advertising Colormatics Dentsu EXL Media GKV Hotspex Media Interpublic Group Katz Media Group Mancuso Media Metric Theory Moburst MuteSix Omnicom Group Inc. Publicis Armenia Publicis Groupe The buying Hub The Remnant Agency Wingman Media WPP

Competition is Rife and Consumers are Spoiled for Choice

Businesses have been using advertisements to promote their offerings since the early days of newspapers. But now, this has grown into a much more complex and higher revenue-generating marketing tactic. Today, showing ads alone does not guarantee a brand's success.

In today’s competitive world, where companies are spending millions of dollars to maintain/increase their market share, one needs to strategically place an ad in front of the right target group at the right time. The term 'media buying' can help companies achieve the optimal outcome of the ads.

The correct media buying agency can help enterprises define and implement the best strategies to achieve amazing results in the shortest amount of time. Media buying helps buy advertising space on desired media channels. These media channels include television, print, newspapers, radio, and mobile apps, among others.

Most companies use programmatic advertising in their media buying strategies as they can leverage technology to automate the entire process. This means that now, companies have more accurate data that provides target customer segmentation, buyer demographics, and insights into the buying behaviors of the target audience.

• Short Term (2022-2025): Recent developments in the field of influencer marketing have driven the demand for media buying services manifold. It is believed that as long as the target audience can relate to their favorite influencers, media buying agencies will enjoy decent demand growth.
• Medium Term (2025-2028): Most people today are spending a good amount of time on their phones/laptops, whether it is for work or entertainment purposes, and have become the target audience for companies. Continuously increasing penetration of the Internet will have a very important role to play in the advertising industry.
• Long Term (2028-2032): Social media platforms with billions of combined users and with zillions of user data will shape the future of the advertisement industry and its ancillaries as a whole. Amazon, Facebook, and Google are the top three market platforms where companies are likely to advertise. Media buying agencies will have a crucial role to play in shaping the future of the advertising industry.

From 2017 to 2021, the media buying services market registered a CAGR of 5.5%, according to Fact.MR, a market research and competitive intelligence provider. Projections are that the market will expand rapidly at 6.2% CAGR between 2022 and 2032.

Market share analysis of media buying services based on channel and region. Under the channel segment, social media advertising dominates with 19% market share in 2022.

Which Factors are Pushing the Demand for Media Buying Services?

“Surge in Number of New Direct to Consumer Brands”

The pandemic has changed the perspective of owning a business forever. During the pandemic, thousands of people across the world lost their jobs and had no opportunities available even when they were ready to accept lower pay. This saw a rise in the number of business getting started.

• According to the US Business Formation Statistics (BFS), there has been a steep rise in business applications since the start of 2021. A new generation of disruptive brands is shaking up the consumer retail space. A direct-to-consumer (DTC) company manufactures, markets, sells, and ships its products without middlemen.

Direct-to-consumer brands have experienced rapid growth during the pandemic, with changes in consumer buying patterns and online channel behavior playing a central role. However, the success of these brands has led to stiff competition from established companies and new market entrants.

The above-mentioned factors have led to increased demand for media buying companies as organizations want to differentiate themselves from their competitors. With the help of media buying agencies, companies are now targeting audiences with more sophisticated and customized advertisements through the right media channel and at the appropriate time.

“Programmatic Advertising is the Future of Media Buying”

Media buying trends are moving from traditional channels to over-the-top media (OTT) and connected television (CTV), and future programmatic ad buying will become the most popular channel for media buyers. Programmatic advertising is the process of buying online advertising impressions automatically. The platform relies on complex interfaces and algorithms to aggregate, book, evaluate, analyze, and optimize advertising campaigns.

The constant change and innovation in the advertising industry can be difficult to keep up with; however, these changes bring new opportunities and better performance prospects. Programmatic advertising has skyrocketed in recent years and continues to do so. Perhaps, most areas of media buying will be completely programmatically dominated over the coming years.

What Challenges are Faced by Media Buying Agencies?

“Ever-Evolving Technology and Complex Market Conditions”

From artificial intelligence to the Internet of Things, the tech industry is undergoing a digital transformation and is growing at breakneck speed. This is the era of digital disruption. And just like technology changes, the needs of the target market are also changing.

Companies need to constantly update their service offerings to remain relevant in today’s competitive world. Enterprises’ expectations from media agencies are also changing with the ever-evolving market scenario. Now, companies want real-time data of their running advertisements with all the minute details of the audience, such as geography, race, age, and gender, among others.

The tech industry is constantly evolving, and if agencies don't adapt to these changes, they won't be able to grow and keep up with the competition.

Country-wise Insights

Rebound in U.S. Corporate Revenue Will Keep Media Buying Agencies on Their Toes

Post-COVID, the U.S. government has taken several steps to improve the economic conditions in the country. Businesses across sectors have started reporting positive numbers in their annual fillings. Many new businesses are also coming with new or improved versions of existing products.

A majority of these companies are funded by private equity and venture capital organizations. Several companies are getting into a similar sector with a very limited product offering. This has led to the tremendous demand for advertisement and has ultimately increased the demand for the services of media buying agencies.

Corporates are trying to differentiate themselves from their competitors by targeting customers by advertising their products on different channels at different times. Media buying agencies are capitalizing on the increased demand for their services with the help of technology and by offering bundled services to clients.

The U.S. media buying services market is expected to expand at a CAGR of 6.2% during the forecast period.

India to Be Major Market for Media Buying Agencies

There are several reasons why India will be a much bigger market than it is at present. India is a country with one of the largest mobile users armed with the cheapest mobile data in the globe. Indians are spending, on average, around 4.5 hours on their mobiles daily.

This gives a humungous opportunity for companies to market their products to their target audience. A substantial part of the mobile users in India are youngsters, who are spending hours and hours playing games on their phones. With limited spending power, youngsters prefer watching ads rather than paying for a prime subscription. Companies are capitalizing on this factor and are marketing their products to a larger audience.

Category-wise Insights

Social Media Advertising Will Enjoy High Demand

Social media continues to grow in popularity and has reached over 3.7 billion users globally in 2021. People are consuming content from social media as if there is no tomorrow. The face of social media has also changed in the last 2-3 years, as people are now consuming shorter time content in comparison to lengthy content. These factors have led to the emergence of new social media platforms such as Tick-Tok, YouTube Shorts, and Instagram reels, among others.

The pandemic has arguably accelerated the rise of 'unfiltered' (or unscripted) content, as well as 'everyday influencers' such as micro- and nano-influencers. People are now relating themselves more with an influencer rather than a known figure. Brands are trying to reach their target audience through these social media influencers. As social media and e-Commerce converge, more influencer partnerships will be leveraged to drive business sales.

Retail & Consumer Goods Companies - Voracious Customers of Media Buying Service Providers

The retail and consumer goods market is continuously adapting to evolving consumer demands and trends. New companies with superior quality products are coming into the market and are trying to eat the market share of established enterprises. The sector has become more competitive than it was ever before.

This has left consumers with endless product comparisons and questions. Consumer goods companies are improving their marketing strategies and driving brand awareness to hold on to customer loyalty in this highly competitive space.

The pandemic has changed the way consumers shop and disrupted the market significantly. Cleaning supplies, non-perishable food & beverages, and toilet paper were hard to come by in a matter of days in some areas. Retail companies are spending huge amounts on marketing to differentiate themselves from competitors and increase their market share.

Competitive Landscape

Prominent media buying service providers are Anderson Collaborative, ARSENL, ATTN Agency, Booyah Advertising, Colormatics, Dentsu, EXL Media, GKV, Hotspex Media, Interpublic Group, Katz Media Group, Mancuso Media, Metric Theory, Moburst, MuteSix, Omnicom Group Inc., Publicis Armenia, Publicis Groupe, The buying Hub, The Remnant Agency, Wingman Media, and WPP.

Global media buying services providers are focusing on expanding their market share by increasing their services offerings, integrating technology in their services, and through mergers & acquisitions.

• In June 2022, WPP announced that it has agreed to acquire the business of Bower House Digital, a leading marketing technology service agency.
• In May 2022, Dentsu Group Inc. acquired additional shares of the digital marketing operations company Dig into Inc.

Fact.MR has provided detailed information about the providers of media buying agencies positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of Media Buying Services Industry Research

• By Type :

  • Direct Buys
  • Programmatic Buys

• By Channel :

  • Digital
    • Social Media Advertising
    • Search Media Advertising
    • Programmatic Media Advertising
  • Traditional
    • Radio Advertising
    • Print Advertising
    • Television
    • Outdoor

• By End-use Industry :

  • BFSI
  • Retail and Consumer Goods
  • Business and Consumer Services
  • Healthcare
  • Manufacturing
  • Transportation and Mobility
  • Energy and Utility
  • Trading and Warehousing
  • Media & Entertainment
  • Hospitality

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa