Digital Advertising Agencies in the US - Industry Market Research Report

Agents of change: Agencies that develop innovative technologies will experience strong demand

Over the past five years, the Digital Advertising Agencies industry has benefited from the rapid shift from traditional print advertising to digital advertisements. In particular, strong demand for digital advertising from the retail, financial services, automotive and telecommunication sectors has bolstered industry revenue. As more consumers generate website traffic through smartphones and tablets, many businesses have purchased digital advertising services to build brand awareness across multiple screens and platforms. Additionally, as more product manufacturers directly sell their products online, many retailers are demanding industry activities such as search engine visibility services to help them compete. Over the past five years, industry revenue grew at a CAGR of 25.2%, including a 7.7% jump in 2023 to reach $60.0 billion. To the industry's benefit, in 2020, the work-from-home arrangements stemming from the COVID-19 (coronavirus) outbreak induced many companies to change their advertising platforms, switching to digital advertising as many people surf the internet when staying at home. Businesses in this industry create advertising campaigns and place the advertisements across digital media outlets. Through in-house capabilities or subcontracting, the agencies provide advice, creative services, account management, production of advertising material, media planning and buying. 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.