Major players in the media buying agencies and representative firms market are Publicis Groupe, Omnicom Group Inc. , Interpublic Group of companies, Dentsu, Katz Media Group and Edelman. The global media buying agencies and representative firms market is expected to decline from $60.
New York, Jan. 04, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Media Buying Agencies And Representative Firms Global Market Report 2020-30: COVID-19 Growth And Change" - https://www.reportlinker.com/p06001458/?utm_source=GNW
36 billion in 2019 to $59.76 billion in 2020 at a compound annual growth rate (CAGR) of -0.98%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities resulting in operational challenges. The market is then expected to recover and reach $70.27 billion in 2023 at a CAGR of 5.55%.
The media buying agencies and representative firms market consists of the sales of advertising services by entities (organizations, sole traders and partnerships) that purchase advertising time or space from media outlets and resell it to advertising agencies or individual companies directly, and independent representatives that sell media time or space for media owners. Only goods and services traded between entities or sold to end consumers are included.
North America was the largest region in the media buying agencies and representative firms market in 2019. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
In October 2018, the Interpublic Group (IPG), a US-based publicly traded advertising company acquired California-based Acxiom LLC (formerly known as Acxiom Marketing Solutions), a SaaS company offering a data connectivity platform, for $2 billion. The acquisition has brought together IPG’s media, consumer insights, marketing services, and analytics capabilities with Acxiom’s expertise in data and integration. This merger is expected to provide IPG strong financial benefits and revenue generation opportunities across a range of data-driven marketing solutions. Acxiom is an American database marketing company selling customer and business information for targeted advertising campaigns.
The media buying agencies and representative firms market covered in this report is segmented by services into media buying service; media planning service; media representative firms; other services. It is also segmented by mode into offline; online and by application into BFSI; consumer goods and retail; government and public sector; IT and telecom; healthcare; media and entertainment.
The COVID 19 uncertainty is likely to limit the growth of media buying agencies and representative firms. The strict restrictions on the movement of people and lockdowns have impacted many industries including out of home (OOH) and print advertising. For instance, lockdown in India started from March 25, 2020, and extended for more than five months. During the lockdown, only essential commodities and medical emergency services were permitted to operate. 90% of the advertising work in India was affected due to the COVID pandemic according to The Association of Advertising Producers’ (ASAP) report. The advertisement spending also declined by 9% in Europe, 7% in Germany, and 12% in France. According to Interactive Advertising Bureau (IAB), almost 24% of media buyers and planners had kept their spending on hold till the end of the second quarter of 2020 while 46% said that they have adjusted their spending across the same period. Therefore, the COVID 19 pandemic is a major factor restraining the growth of media buying agencies and representative firms market.
Media buyers using Artificial Intelligence (AI) for media optimization is gaining significant popularity in the media buying agencies and representative firms market. AI is changing the way advertising operations are run. Salesforce reports that 60% of marketing leaders believe in AI and feel it would help them run more effective programmatic campaigns. Around 4 out of 10 advertisers use AI for media spend optimization and better audience segmentation. It was also found that companies use their AI capacities for streamlining their sales process and productivity. Salesforce has introduced Salesforce Einstein, which with the help of AI helps media companies to get predictions and recommendations based on their business processes. IBM introduced its AI engine Watson in 2018. Watson Media Solutions helps media companies to use AI in their media workflow to improve viewer engagement, video analytics, and delivery. Media companies such as Fox Media and The Weather Channel have embraced Watson’s AI capabilities and more media buyers in the future are expected to use AI for efficient business.
An increasing number of political events, sports events, festivals, and high budget movies is anticipated to contribute to the demand for media buying agencies and representative firms’ market. For instance, for the 2020 US presidential elections, the Democratic Party has released ads in 14 Indian languages to encourage the voters of Indian origin. According to the Center for Responsive Politics, a nonpartisan group in the USA estimated the campaigning cost for the 2020 presidential elections to be around $10.8 billion. According to the leading advertising and digital communications group Dentsu Aegis Network, in 2018, the total media and advertisement market was estimated to be around $613.5 billion on account of major global events such as the Winter Olympics & Paralympics, the FIFA World Cup in Russia. In 2020, Burning Man, one of the biggest global music fests hosted 70,000 people across the globe in Nevada, US, allowing advertisers to reach a large target audience at a time. Therefore, crowd gathering occasions like political events, sports events, and festivals are driving the media buying agencies and representative firms market.
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