The global creative agencies market was valued at almost USD543 billion in 2016 and is expected to reach around USD712 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on creative agencies for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global creative agencies market during the forecast period. Some of the top vendors listed in this industry analysis include WPP PLC, Omnicom Group, Inc., Publicis Groupe, Interpublic Group of Companies, Inc., and Dentsu Inc.
In terms of geographical analysis, the Americas is the largest shareholder in the global market with a market share of around 44%. North America contributes more than 30% to the global category spend and is expected to be the largest market during the forecast period.
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According to Angad Singh, a category specialist at Technavio for research on category spend intelligence, “The global market is currently witnessing a shift in preference from AOR to project-based relationships. Buyers of creative services prefer to avail services from agencies that produce innovative content at low costs, with improved project scope and management practices. A project-based relationship enables buyers to explore and utilize the capabilities of agencies other than the AOR. Hence, they tend to analyze agency practices before collaborating with them, unlike in the AOR model where a single agency handled all of their creative requirements.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Increased social media penetration rates
Social media platforms such as Facebook and Twitter are being increasingly used to create traction among customers and thereby increase the brand awareness. Growth of such platforms is propelling the relative advertising spend, driving the growth of creative services that focus on digital media such as blog posts and infographics. For example, the global advertising spend on social media is expected to account for 20%-23% of the total digital advertising spend by 2018.
Growth in demand from various industry sectors
Buyers from various industry segments spend around 15%-25% of their total revenue in marketing campaigns and related creative services. The spend on such campaigns and services is projected to increase by another 5%-8% during the forecast period. The increase in spending will be fueled by the need to create brand awareness and differentiation. Industries such as FMCG, healthcare, and automobile are expected to contribute more to the industry’s growth owing to the increase in product innovation and competitive pressure.
Growing adoption of mobile advertising
Growing Internet penetration and the ability to provide improved user experiences in digital media is triggering an increase in advertising spend among companies across the globe. For instance, digital advertising accounted for almost 30% of the global advertising spend in 2015 and it is expected to reach 39% by 2018. In the digital advertising category, the global expenditure on mobile advertising, which accounted for approximately 35% of the total digital advertising spend in 2015, is expected to account for more than 60% in 2018.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Creative Agencies – Procurement Market Intelligence 2016.’
