Global advertising agencies market is anticipated to rise at a considerable rate of $463.83 billion by 2027 at a CAGR of 4.3%.

This disclosure was made in a recent research report by Research And Markets.com, a leading source for international market research.

Prior to this, a previous projection by the same report showed that it grew from $372.55 billion in 2022 to $391.6 billion in 2023 at a compound annual growth rate (CAGR) of 5.1%.

The analysis revealed some major players in the advertising agencies market with notable agencies such Caveni Digital Solutions, Socialiency Advertising, Tegra, BrandBurp Digital, AKQA, Plan Z, Titan SEO Group, Breakneck Creative, Publicis Groupe Thevisiontech, Dentsu Inc., WPP PLC and Omnicom Group Inc. and others. It noted that during the forecast period, the market will be growing at a steady rate and with the rising adoption of strategies by key players.

ResearchAndMarkets.com reported that the advertising agencies market consists of revenue earned by entities by involving in marketing activities such as planning, developing, creating and managing advertisement campaigns and promotional activities in newspapers, radio, television, websites and social media sites.

According to the research firm, these establishments are organized to provide a full range of services (i.e., through in-house capabilities or subcontracting), including advice, creative services, account management, production of advertising content, media planning, and buying (i.e., placing advertising).

It added that market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

Following its regional rating among the major players, the analysis also indicated that North America was seen to be the largest region in the advertising agencies market in 2022.While Western Europe was the second largest region in the advertising agencies market.

Listing some of the regions covered in the advertising agencies market report to have included Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

ResearchAndMarkets.com underscored some of the main types of advertising agencies such as TV, digital, radio, print, out-of-home (OOH), and others.

It enumerated the various modes of advertising which are online advertising and offline advertising and are used by the following: banking, financial services, and insurance sector (BFSI); consumer goods and retail; government and public sector; IT & telecommunication; healthcare; and media & entertainment.

Also, the data showed that an increase in advertising 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.

There is an indication that digital advertising has recently surpassed total TV ad spending.

Another marketing and research company, WordStream, disclosed that digital ad spend was estimated at $441 billion in 2022 and projected to reach $485 billion in 2023, globally.

In another data provided by a Global Digital Ad Trends report published by PubMatic 2020, a digital advertising technology company, it explained that the US digital ad spend was $129.3 billion in 2019 and was projected to reach $201.8 billion in 2023, constituting 66.7% of total spending.

The data gave an indication that in the US, digital ad spending surpassed traditional media spending, where the retail industry had the highest percentage of total advertising spend on advertising. It opined that the rise in advertising spending was predicted to fuel the demand for the advertising agencies market. It also accounted that the high cost of hiring an advertising agency, especially during tough economic times, is limiting the growth of the advertising agencies market.

The report cited that in smaller regions or markets, the cost of hiring 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, while the average cost for digital marketing services ranges from $2,500 to $12,000 per month for small-to-midsized businesses (SMBs).

It attributed that the launch of artificial intelligence (AI) in advertising is gaining popularity in the advertising agencies market and that major players operating in the industry are continuously focused on introducing innovations and technologies to better serve the needs of consumers. The countries covered in the advertising agencies market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.