Media Buying Agencies in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: March 2024
NAICS 54183Revenue
$13.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
19,539
Businesses
679
Wages
$X.Xbn
Media Buying Agencies in the US industry analysis
The emergence of new media and the shift away from traditional media toward digital services has particularly prompted a change in advertising strategies. Since almost all companies are undergoing a digital transformation, media buying agencies must specialize in online advertising to adapt to the changing media landscape. Many companies have been able to do this effectively. Nonetheless, inflation hit a fresh 40-year record in 2022, pulling back on ad spending and causing corporate profit and consumer spending to drop. While this dynamic has since eased, the industry has been forced to innovate to sustain demand amid uncertain economic conditions. Data-driven insights and programmatic advertising have propelled the industry forward. Media Buying Agencies revenue has increased at a CAGR of 1.9% to total $13.3 billion in 2024, including an estimated 0.7% in the current year, while profit reaches 10.1%.
Trends and Insights
- Revenue is under pressure as consumers try harder to avoid advertisements. Media buying agencies have turned to external services and tools to show viewers more relevant ads based on preference to minimize ad-skipping.
- Media buying agencies provide both media planning and buying services. Clients increasingly demand the ability to secure media time and space and create and monitor advertisement placements.
- The West region accounts for the largest share of establishments. Many major TV studios have production companies in California, so media buyers and representatives have located themselves in the area.
- Competition in media buying agencies is high because of the ongoing consolidation of major advertising agencies on a global basis. Since market concentration is low, the industry comprises many small companies operating as subsidiaries of major holding companies.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.9 % over the past five years, to reach an estimated $13.3bn in 2024.
Trends and Insights
Revenue is under pressure as consumers try harder to avoid advertisements
- One of the newest challenges industry enterprises face is internet users who bypass online advertisements. 81.0% of US ad-blocking users said they use ad blockers to avoid interruptive or annoying ads, according to a 2022 survey by Blockthrough. Media buying agencies have turned to external services and tools to show viewers more relevant ads based on preference to minimize ad-skipping.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Programmatic ad buying poses both an opportunity and a threat to media buying agencies
- The proliferation of digital ad space on many platforms, declining digital ad space prices and shifting away from costly traditional advertising will limit industry growth.
Biggest companies in the Media Buying Agencies in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Interpublic Group Of Companies, Inc. | 5,071.6 | 367.4 | 7.2 | |
Omnicom Group Inc. | 465.7 | 53.5 | 11.5 | |
Wpp Plc | 370.4 | 4.0 | 1.1 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Full media planning and buying services, Media buying services and Media planning services. Full media planning and buying services is the largest segment of the Media Buying Agencies in the US.
Trends and Insights
Full media planning and buying services face challenges
- Full media planning and buying services include strategic planning and purchasing advertising space for their clients. Social media platforms like TikTok and Instagram have opened up a new channel for businesses to advertise and reach their target audience, dropping demand for the segment.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Direct Mail Advertising in the US
Complementors
- Advertising Agencies in the US
- Media Representative Firms in the US
- Billboard & Outdoor Advertising in the US
International industries
- Global Advertising Agencies
- Media Buying Agencies in Australia
- Advertising and Market Research Services in New Zealand
Table of Contents
About this industry
Industry definition
Media buying agencies purchase advertising time and space from media providers and resell it to advertisers. They can also be involved in planning individual campaigns and monitoring the results of advertising placements against agreed metrics, including target audience reach. Large advertisers may bypass this industry by using in-house media buying teams and dealing directly with media representatives.
What's included in this industry?
Media buying servicesCompanies
Interpublic Group Of Companies, Inc.Omnicom Group Inc.Wpp PlcPurchase this report to view all 7 major companies in this industry.
Related Terms
MEDIA PLANNINGMEDIA BUYINGTRADITIONAL MEDIANEW MEDIAMAIN MEDIABELOW-THE-LINEDEMOGRAPHICSCIRCULATIONPROGRAMMATIC ADVERTISINGAPPLICATION PROGRAMMING INTERFACE (API)Industry Code
NAICS 54183 - Media Buying Agencies in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Revenue is under pressure as consumers try harder to avoid advertisements. Media buying agencies have turned to external services and tools to show viewers more relevant ads ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Media buying agencies provide both media planning and buying services. Clients increasingly demand the ability to secure media time and space and create and monitor advertise...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The West region accounts for the largest share of establishments. Many major TV studios have production companies in California, so media buyers and representatives have loca...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition in media buying agencies is high because of the ongoing consolidation of major advertising agencies on a global basis. Since market concentration is low, the indu...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Omnicom Group acquires TechAspect Solutions to expand its digital service offerings. TechAspect Solutions specializes in the design, delivery and implementation of customer e...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Interpublic Group Of Companies, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Omnicom Group Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Wpp Plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for Interpublic Group Of Companies, Inc., and factors influencing its performance in the industry
- Description and key data for Omnicom Group Inc., and factors influencing its performance in the industry
- Description and key data for Wpp Plc, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry doesn't receive any governmental assistance. Many agencies belong to trade associations like the American Association of Advertising Agencies (AAAA) and the Amer...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cost structures vary across the industry. Companies may benefit from operating efficiencies by conducting at scale or offering more services with greater technological implem...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Media Buying Agencies in the US industry in United States in 2024?
The market size of the Media Buying Agencies in the US industry in United States is $13.3bn in 2024.
How many businesses are there in the Media Buying Agencies in the US industry in 2024?
There are 679 businesses in the Media Buying Agencies in the US industry in United States, which has declined at a CAGR of 1.4 % between 2019 and 2024.
Has the Media Buying Agencies in the US industry in United States grown or declined over the past 5 years?
The market size of the Media Buying Agencies in the US industry in United States has been growing at a CAGR of 1.9 % between 2019 and 2024.
What is the forecast growth of the Media Buying Agencies in the US industry in United States over the next 5 years?
Over the next five years, the Media Buying Agencies in the US industry in United States is expected to grow.
What are the biggest companies in the Media Buying Agencies in the US market in United States?
The biggest companies operating in the Media Buying Agencies market in United States are Interpublic Group Of Companies, Inc., Omnicom Group Inc. and Wpp Plc
What does the Media Buying Agencies in the US in United States include?
Media buying services and are part of the Media Buying Agencies in the US industry.
Which companies have the highest market share in the Media Buying Agencies in the US in United States?
The company holding the most market share in United States is Interpublic Group Of Companies, Inc..
How competitive is the Media Buying Agencies in the US industry in United States?
The level of competition is high and steady in the Media Buying Agencies in the US industry in United States.
