Traditional Advertising Agency Services Market Size, Share & Trends Analysis Report By Service Type (Online Services, Offline Services), By End Use Industry (Consumer Goods, Healthcare, Automotive, Financial Services, Technology, Retail, Travel and Tourism), By Client Size (Small and Medium Enterprises (SMEs), Large Corporations, Startups), By Geographic Scope (Local Advertising, National Advertising, International Advertising), By Channel (Television, Radio, Print, Outdoor, Direct Mail), By Campaign Duration (Short-Term Campaigns, Long-Term Campaigns), By Budget (High-Budget Campaigns, Moderate-Budget Campaigns, Low-Budget Campaigns), By Target Audience (B2C (Business-to-Consumer), B2B (Business-to-Business)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global traditional advertising agency services market size generated a revenue of USD 261.19 billion in 2023 and is expected to be valued at USD 401.46 billion by 2032. The market is expected to grow at a CAGR of 5.52% during the forecast period (2024–2032). 

Advertising has been in the market since old ages when businesses used to advertise their products and services to attract customers. It also served as a brand recognition element in the earlier days. It all started with newspaper advertising way back in the 19th century. When we go through the current advertising industry, we can see the massive changeover in the advertising industry.

Traditional marketing is an interruptive form of marketing where marketers can reach out to their potential customers anytime and anywhere. These interruptive ads can be newspaper ads, TV commercials, billboards, radio ads, emails, etc. The traditional marketing approach allows marketers to pitch their services directly to their customers regardless of their willingness to see or read the advertisement.

It does impact the overall marketing campaigns of a company as people can’t ignore a forced advertisement in a newspaper or while watching TV. It is a tried and tested method as people have to go through the ad whenever they watch TV or read a newspaper, they might overlook the ad, but at least they will remember the brand name or the product that catches their attention.

Market Dynamics

Traditional Advertising Agency Services Market Drivers

Intense Marketing Competition Leading to New Appointments of Advertising Agencies

The global advertising industry is a sector that generates a billion dollars of revenue across multiple regions. A challenging and competitive ecosystem has been established in the global traditional advertising agency services market as a result of the impressive growth of start-ups that provide marketing and advertising services in various segments of the global advertising industry. These advertising agencies assist companies in identifying qualified customers by implementing effective advertising strategies and ad placements in multi-channel marketing campaigns to reach their target audience.

The advertising market is highly volatile due to the rapid evolution of industries. The companies maintain the highest standards of brand marketing and product advertising, as they do not compromise on their branding and advertising. In order to attract additional customers and boost their revenue, organizations must ensure that their advertisements are of the highest quality. This has resulted in heightened competition among traditional global advertising agencies, as the global advertising standards have advanced to the next level of marketing.

Cost-Effective Advertising Campaigns Compared to In-House Marketing

One of the advantages that traditional advertising agency services offer is that their operations are more cost-effective than those of any marketing campaigns. The majority of businesses have a limited marketing budget and rely on their own internal marketing team to do their marketing. For this reason, the majority of businesses are shifting their focus to traditional advertising agency services in order to enable their marketing campaigns to reach the greatest number of customers possible through the use of interruptive advertising techniques at the most affordable price.

Traditional Advertising Agency Services Market Restraints

Prioritization of Clients by Advertising Agencies

Such traditional advertising agencies often serve multiple clients at a time. According to a study, such advertising agencies work for 17 clients simultaneously, which creates chances for small human errors. But the fact is, the traditional advertising agencies serve their clients following the revenue associated with it. Clients are prioritized by the revenue they contribute to the agency's business, and the more revenue-generating clients are treated with more value than the clients that contribute in lesser ratios. This prioritization system from the advertising agencies can hamper the client relationship. It can create an extension in deadlines and the quality of the content produced for the marketing material. This is where companies can re-think outsourcing traditional advertising agency services for their marketing and advertising needs.

Constrained Experience in Serving Niche Clients

Advertising is the need of the hour for every business to succeed in this highly volatile global market. Many advertising agencies operate in a niche market of serving a specific industry and branding for them on selected advertising channels or sources. This offers a commendable experience of running high-performing advertising campaigns in the said niche market but creates a barrier when needed to expand their services to other industrial segments.

Considering the Covid outbreak, there has been a significant increase in the television viewing hours, which helped brands attract new customers, leading to the need for traditional advertising agency services market. So, the agencies must have a blended experience serving clients in various industrial segments.

Traditional Advertising Agency Services Market Opportunities

Television Escalation as an Advertising Medium

Traditional advertising comes under interrupting ads as these are shown so that readers can't ignore their ads. For example, if your customers are watching a cricket match and during the innings break, an ad comes, and people have to see it as they can't ignore it. This makes the consumers recognize the brand as the ads keep interrupting their streaming services now and then. There is no control over the audience set while projecting an advertisement on TV. Still, these ads can increase the reach to the entire region irrespective of the target audience and has the potential of attracting a potential customer with the wide range of sales funnel opened with such interruptive ads.

Customer Success Stories Boosting Traditional Advertising Services

Every business runs with a strong customer base, and to have such a customer base, the business needs to earn the trust of its consumers. This is where the customer success stories play a vital role. This can attract numerous potential customers who can conduct business transactions with traditional advertising agency services. Many traditional advertising agencies often publish their client testimonials publicly on a website, a newspaper or magazine ad, hoardings, etc. According to surveys conducted, the majority of the advertising agencies are selected based on their client testimonials and customer success stories.

Regional Analysis

The global traditional advertising agency services market share are categorized into five regions: North America, Asia-Pacific, Europe, Middle-East & Africa. The North American region is the most dominant one, with a sales figure of USD 66.05 billion. The market in the region is expected to reach USD 109.89 billion by 2030 at a CAGR of 5.82%.

Europe is one of the highly fragmented markets for traditional advertising agencies. About 97% of the companies in the European region seek assistance from such advertising agencies to market their brand and create awareness among the consumers.

The Asia-Pacific (APAC) region is soaring to new heights in the global traditional advertising agency services market as the need for a unique and result-oriented marketing approach is in demand in the region with the evolution of new industries in one of the most developing countries like India and China. Of which India is the most dominant, with a share of USD 19.22 billion in 2021 and generating USD 33.16 billion at a CAGR of 6.25% by 2030.

Segmental Analysis

The global traditional advertising agency services market share is classified into type and end-use.

Based on types, the market is divided into online and offline services.

Type and end-use are the two categories into which the global traditional advertising agency services market share is divided. The market is divided into online and offline services when it is classified into types. In 2021, the global market was dominated by the online service segment, with a sales figure of USD 56.01 billion. It is anticipated that the segment will expand at a compound annual growth rate (CAGR) of 6.35%.

Online services are a tactical evolution of the tried-and-true strategies of the traditional marketing approach, combining traditional and modern advertising methods. The most effective strategies of conventional marketing, including product, promotion, price, and location, are also applicable to contemporary online marketing services.

Online marketing can be seamlessly integrated with traditional marketing to establish a brand and establish a market position. The evolution of online channels such as e-magazines and e-newspapers has gained significant popularity in recent times, and traditional online services include data analytics and surveys. Advertisers have devised innovative methods to leverage the traditional advertising strategy and online services. In the present day, traditional advertising agencies employ sophisticated online technologies, including data acquisition, email marketing, and analytics.

Newspapers, magazines, television, radio, and outdoor advertising are the primary offline services. Additionally, these offline services are classified as print, broadcast, and telephone marketing. Print marketing is the most ancient form of traditional advertising and has been in use since ancient times, when considering the overall offline services. Currently, print marketing is typically used to describe advertising in publications such as newspapers, magazines, flyers, and pamphlets.

Although digital marketing strategies have emerged, offline advertising services, including banner ads and printed news, continue to generate nearly 80% of the revenue. In addition, telemarketing is a successful marketing strategy for offline services, as it involves the persuasion of customers to purchase the company's products or services through cold calls from sales executives.

Based on the end-user, it is further classified into government and enterprise use.

In terms of its intended application, it is further classified into government and enterprise use. The enterprise module has a larger market share than the government use category, with a sales figure of USD 138.94 billion. It is anticipated to grow at a compound annual growth rate (CAGR) of 5.91%, which is 2% higher than the government use category. Traditional advertising services are employed by governments for a variety of purposes, including awareness campaigns, public welfare initiatives, job notifications, and national information.

The government frequently utilizes conventional advertising agencies to advance its governance and the nation's objectives. One recent example of this is the Indian Railways, which has installed approximately 1000 digital screens at 2175 railway stations to promote rail services. This initiative is anticipated to generate a revenue of USD 1.76 billion.

The traditional advertising approach is also employed by the enterprise model to attract potential customers into its sales funnel and establish brand awareness. In order to attract their target audience to their sales channel, enterprises prioritize interruptive advertising as the most cost-effective approach.

Impact of covid-19

The disruption of the global supply chain caused a considerable reduction in the cash liquidity in the market, and the reduced income of the end-users affected the revenue generation of several market leaders. A subsequent decrease in the market operations resulted in a reduced revenue generation for many leading companies globally. With the Covid-19 outbreak, the traditional advertising, including billboard ads and the distribution of business flyers in public places, got restricted due to the preventive measures of the Covid-19, which decreased the demand for such advertisement platforms.

The pandemic has impacted television viewership by 40% since April 2020, but it saw a steep decrease in the number of advertisers as it dropped from 1378 to 1021 in the said period. This reduced number of advertisers dropped the revenue generation from the television advertisement. Due to this, many marketers are shifting their branding and marketing to a digital platform with digital marketing.

Recent Developments

• In September 2020, Epilson launched new products for loyalty solutions for mid-size brands expanding industry-leading capabilities. 
• In July 2020, 360I contracted with Dentsu Aegis Network as its first integrated media agency to look after advertising and brand marketing.
• In February 2021, Cox media signed an agreement with AT&T to provide CMG-owned local broadcast stations to customers across the US.
• In February 2021, MDC Partners expanded its services with an affiliated program that will fast-track its presence in the emerging markets without taking an immediate risk.