Advertising Agencies in Australia - Industry Research Report

A digital approach: The growing popularity of online advertising is boosting revenue

The Advertising Agencies industry provides advertising services to clients across all forms of media. The industry has been volatile in recent years, spurred by shrinking print and broadcast media demand and a challenging operating environment from the COVID-19 pandemic. Demand for advertising agency services slumped in response to the COVID-19 pandemic as negative business confidence and economic uncertainty prompted many businesses to tighten their marketing budgets. Advertising agencies are struggling despite clients spending more on online and digital advertising and a growing focus on customised online advertising based on user characteristics and website preferences and use. Intense price-based competition, along with mounting wage and purchase costs, is squeezing profit margins. Despite the unprecedented losses experienced over the two years through 2020-21, revenue has been growing at an average annualised 1.0% over the five years through 2022-23, totalling an estimated $3.5 billion in 2022-23, with revenue jumping by an estimated 1.1%.

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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.