Advertising in the US: ISIC 743
Euromonitor International
October 2024
ADVERTISING IN THE US: ISIC 743 Passport i
LIST OF CONTENTS AND TABLES
HEADLINES ................................................................................................................................. 1
INDUSTRY OVERVIEW ............................................................................................................... 1
Chart 1 Key Industry's Indicators 2018-2028 ............................................................ 1
TURNOVER SCORECARD ......................................................................................................... 2
Summary 1 Scorecard of Turnover Pillar 2018-2028....................................................... 3
Chart 2 Turnover Developed Countries Comparison 2023 ....................................... 3
Chart 3 Turnover per Capita Developed Countries Comparison 2023 ...................... 4
Chart 4 Turnover Growth Developed Countries Comparison 2018-2028 .................. 4
Chart 5 Future and Absolute Growth of Turnover Developed Countries
Comparison 2023-2028................................................................................ 5
Chart 6 Turnover 2018-2028 ..................................................................................... 5
Chart 7 Turnover by Category 2018-2023................................................................. 5
Chart 8 Turnover by Category 2023-2028................................................................. 6
Chart 9 Turnover per Employee 2018-2023 .............................................................. 6
INDUSTRY’S GROWTH DRIVERS .............................................................................................. 7
Summary 2 Key Buyer Industries in the US 2018-2028 .................................................. 7
Summary 3 Key Supplier Industries in the US 2018-2028............................................... 8
Chart 10 External Demand Factors ............................................................................. 8
Chart 11 Top Industry’s Suppliers and Buyers ............................................................ 8
COST STRUCTURE .................................................................................................................... 9
Chart 12 Cost Structure Comparison 2023 ................................................................. 9
Chart 13 Cost Structure 2018-2023 ............................................................................ 9
Chart 14 B2B Costs and Growth 2023, USD million ................................................. 10
Chart 15 Prices of Selected Commodities and Other Economic Indicators 2023
Q3-2024 Q4, Index..................................................................................... 11
Chart 16 Profit and Profit Margin 2018-2023............................................................. 12
Chart 17 Average Salary 2018-2023......................................................................... 12
Chart 18 Labour Costs and Employee Productivity Comparison 2018-2023 ............ 13
FIRMOGRAPHICS ..................................................................................................................... 13
Chart 19 Number of Companies by Size 2018/2023 ................................................. 13
Chart 20 Competitive Landscape Structure by Company Size 2018/2023 ............... 14
Chart 21 Top Companies’ Ranking 2018-2023 and % of Turnover Value 2023 ....... 14
MARKET OVERVIEW ................................................................................................................ 15
Chart 22 Market Structure by Buyer 2018-2023........................................................ 15
Chart 23 B2B Buyers and Growth 2023, USD million ............................................... 15
ATTRACTIVENESS INDEX ....................................................................................................... 16
Chart 24 Attractiveness Index in Selected Industries 2023 ....................................... 16
Chart 25 Advertising Attractiveness Index Comparison Across All Industries
2023 ........................................................................................................... 17
Chart 26 Attractiveness Index Methodology ............................................................. 17
ECONOMIC CONTEXT AND LABOUR MARKET ..................................................................... 18
Summary 4 Economic Context and Labour Market 2023-2028 ..................................... 18
© Euromonitor International
ADVERTISING IN THE US: ISIC 743 Passport 1
ADVERTISING IN THE US: ISIC 743
In 2023, the US’s advertising industry grew by 5.4% and was the largest across the top 20
developed countries in terms of turnover value. The industry’s turnover is forecast to increase at
a CAGR of 4.3% over 2023-2028. This industry report provides comprehensive data on
turnover, consumption, imports, exports, costs, profitability, and the competitive landscape. Key
indicators are benchmarked against other regional and developed countries.
HEADLINES
▪ With turnover of USD216 billion, the US accounts for 92.7% of the North America total in 2023
▪ The industry’s profitability increases and stands at 32.7% of turnover in 2023, the highest
across the top 20 developed countries
▪ The costs of the industry increase by 4.2% in 2023, largely driven by rising B2B costs
▪ The total number of companies increases in 2023, to 125,226 units
▪ The industry is fragmented, with the top five companies generating 10.6% of total production
value in 2023
▪ Omnicom Group Inc is the largest company in the US, generating 4.3% of the industry’s total
turnover value in 2023
▪ B2B drives market demand, with B2B spending representing 99.9% of total demand in 2023
INDUSTRY OVERVIEW
Chart 1 Key Industry's Indicators 2018-2028
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Source: Euromonitor International from official statistics, trade associations
Advertising industry turnover in the US ranks first across the top 20 developed countries. The
industry is forecast to rank first across the top 20 developed countries in 2028. The industry
continued to grow over 2023. In terms of absolute industry turnover growth, the US is projected
to rank first across the top 20 developed countries. This indicates stronger B2B demand
potential from the advertising industry in the US in comparison to other developed countries.
The industry’s profitability increased and reached 32.7% in 2023. The US ranks first across
the top 20 developed countries in terms of the advertising industry’s profitability.
TURNOVER SCORECARD
The Turnover Scorecard is a benchmarking tool to evaluate the industry’s performance within
the region. The scorecard considers indicators in seven key pillars that are at the core of the
industry’s competitiveness. The scorecard is built by ranking countries in the regional context
and helps to quickly identify country-specific opportunities. Unless otherwise noted, all values
expressed in this report are in US dollar terms, using y-o-y exchange rates. Data for 2024-2028
period are forecasts. All forecast data are expressed in current terms.
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The advertising industry in the US ranked first across the top 20 developed countries by
turnover in 2023. Higher production value levels indicate higher potential B2B demand from the
industry and stronger supply network which supports production.
The industry ranked first in the region in terms of historic turnover growth, indicating that the
advertising industry in the US is in developing stage. In terms of future absolute turnover growth,
the industry is predicted to rank above developed countries’ average, indicating expanding B2B
demand potential from the industry.
The advertising industry in the US ranked first in the region by profitability in 2023. This
indicates lower operating costs of the industry and competitive advantage against rivalling
countries.
Summary 1 Scorecard of Turnover Pillar 2018-2028
Indicator Developed Countries Ranking (out of 20)
Turnover, 2023 1
Historic turnover growth, % CAGR 2018-2023 1
Future absolute turnover growth, 2023-2028 1
Future turnover growth, % CAGR 2023-2028 6
Profitability, 2023 1
Source: Euromonitor International from official statistics, trade associations
The turnover indicator helps to evaluate the industry’s size, supply chain network and B2B
demand. Higher turnover levels indicate greater potential B2B demand from the industry and a
stronger supply network, which supports production.
Historic turnover growth indicates the industry’s average annual turnover growth over the
period 2018-2023. The historic growth rate indicates whether the industry is mature or in the
developing stage.
Future absolute turnover growth indicates the industry’s absolute turnover growth in nominal
terms over the period 2023-2028. High future absolute value growth indicates expanding
production output of the industry and increasing B2B demand potential from the industry.
The future turnover growth indicates the industry’s average annual turnover growth over the
period 2023-2028. The indicator helps to evaluate the industry’s future growth potential. A high
average future growth rate indicates that the industry is in the development stage, with untapped
B2B demand potential from the industry.
Profitability indicates the industry’s profits relative to total production value in 2023. The
indicator helps to evaluate the industry’s financial stability, cost base and regional
competitiveness. High profitability indicates a strong financial position for the industry, lower
operating costs in the country and the industry’s competitive advantage over rival industry in
other countries.
Chart 2 Turnover Developed Countries Comparison 2023
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Source: Euromonitor International from official statistics, trade associations
Note: Production value shows total revenue (including export revenue) generated by all locally registered
companies, the core activities of which fall under the industry definition range. Measured at basic
prices/MSP. Also called turnover or turnover of local producers.
Chart 3 Turnover per Capita Developed Countries Comparison 2023
Source: Euromonitor International from official statistics, trade associations
Chart 4 Turnover Growth Developed Countries Comparison 2018-2028
Source: Euromonitor International from official statistics, trade associations
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Chart 5 Future and Absolute Growth of Turnover Developed Countries Comparison
2023-2028
Source: Euromonitor International from official statistics, trade associations
Note: Top right quadrant of the chart indicates the best performing industries that will show above average
annual future growth and high absolute turnover growth over the period 2023-2028. Bottom right
quadrant of the chart indicates mature industries that will show below average annual future growth but
high absolute turnover growth over the period 2023-2028. Top left quadrant of the chart indicates
emerging industries that will show above average annual future growth but small absolute turnover
growth over the period 2023-2028. Bottom left quadrant of the chart indicates underperforming industries
that will show below average annual future growth and small absolute turnover growth over the period
2023-2028.
Chart 6 Turnover 2018-2028
Turnover in 2023 – USD216 billion
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 7 Turnover by Category 2018-2023
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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 8 Turnover by Category 2023-2028
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 9 Turnover per Employee 2018-2023
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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Turnover per employee dynamics help to evaluate the productivity of the industry. Expanding turnover
per employee indicates increasing productivity levels and higher future turnover growth potential for the
industry.
INDUSTRY’S GROWTH DRIVERS
The advertising industry in the US depends on the demand from retail, sale, maintenance and
repair of motor vehicles, retail sale of automotive fuel and computer and related services. These
buyers generated 40.0% of the total demand in 2023, indicating that industry is highly reliant on
the key buyers. Retail, sale, maintenance and repair of motor vehicles, retail sale of automotive
fuel and computer and related services are forecast to show slower growth over 2023-2028,
indicating weaker demand for the advertising industry over the forecast period.
On the supply side, the key suppliers to the advertising industry are office administrative and
other business services, real estate activities and business and management consultancies.
The advertising industry spent 25.8% of total costs in 2023 on these suppliers.
External demand factors, such as economic growth, services sector growth, inflation and
consumer habits, are affecting the advertising industry in the US.
Summary 2 Key Buyer Industries in the US 2018-2028
Key Buyer Industries Turnover in 2023, Turnover Growth, % Forecast Growth, %
USD million CAGR 2018-2023 CAGR 2023-2028
Retail 2,046,619 8.2% 4.3%
Sale, Maintenance 1,309,026 5.6% 4.3%
and Repair of Motor
Vehicles, Retail Sale
of Automotive Fuel
Computer and 1,624,938 9.0% 4.3%
Related Services
Monetary 3,448,969 6.8% 4.1%
Intermediation
Source: Euromonitor International from official statistics, trade associations, trade press, company research
© Euromonitor International
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Summary 3 Key Supplier Industries in the US 2018-2028
Key Supplier Turnover in 2023, Turnover Growth, % Forecast Growth, %
Industries USD million CAGR 2018-2023 CAGR 2023-2028
Office Administrative 548,473 6.4% 4.3%
and Other Business
Services
Real Estate Activities 4,741,792 6.3% 4.4%
Business and 798,849 5.7% 3.9%
Management
Consultancies
Advertising 216,008 7.6% 4.3%
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 10 External Demand Factors
Source: Euromonitor International
Chart 11 Top Industry’s Suppliers and Buyers
Source: Euromonitor International
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COST STRUCTURE
Industry costs increased by 4.2% in 2023. The change was largely impacted by B2B costs,
which represented 56.7% of total industry expenditure. In addition, average salary in advertising
grew by 4.2% over 2023. Meanwhile, turnover per employee increased by 4.3% over the year.
In 2023, the advertising industry had lower labour costs in comparison to the services sector
average in the US. In addition, B2B costs were lower than the services sector average.
Chart 12 Cost Structure Comparison 2023
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 13 Cost Structure 2018-2023
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Total costs equal production value less profits.
B2B costs show the total value of the goods and services consumed as inputs for a process
of production of goods and/or provision of services. The goods and services may be either
transformed or used up by the production process. Intra-industry trade, which is also included
(the industry itself is among its major buyers), refers to the exchange of products within the
same industry definition range.
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Labour costs are defined as the total remuneration, in cash or in kind, payable by an
enterprise to an employee in return for work done. No labour costs are payable in respect of
unpaid work undertaken voluntarily, including the work done by members of a household within
an unincorporated enterprise owned by the same household.
Taxes less subsidies refer to taxes less subsidies on production and includes production
taxes paid by the industry or subsidies received by the industry. Excluded are specific taxes on
products such as VAT, petrol tax, tobacco tax and alcohol tax.
Chart 14 B2B Costs and Growth 2023, USD million
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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 15 Prices of Selected Commodities and Other Economic Indicators 2023 Q3-2024
Q4, Index
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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 16 Profit and Profit Margin 2018-2023
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Profits are calculated as the difference between production and total costs (B2B costs, labour costs,
taxes less subsidies). The profit margin is calculated as profits divided by production value, and is
measured as a percentage. Profit and profit margin dynamics help to evaluate the financial stability and
competitiveness of the industry. Stable profitability of the industry indicates that the industry is capable of
maintaining its financial stability and competitiveness, indicating a stable future outlook in terms of B2B
demand potential.
Chart 17 Average Salary 2018-2023
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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Average salary shows labour costs divided by number of employees.
Chart 18 Labour Costs and Employee Productivity Comparison 2018-2023
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Average salary and turnover per employee dynamics help to evaluate the industry’s competitiveness.
Faster growth in turnover per employee in comparison to average salary growth indicates that the
industry is capable of maintaining its competitiveness and can compensate for cost increases through
increased production output.
FIRMOGRAPHICS
The total number of companies operating in the industry started to recover in 2023 to 125,226
companies. The industry can be considered fragmented, as the five largest companies
accounted for 10.6% of production value in 2023. The industry’s concentration decreased over
the year. Omnicom Group Inc remained the leading company in the US’s advertising industry
and accounted for 4.3% of production value in 2023.
Chart 19 Number of Companies by Size 2018/2023
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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Number of companies shows the number of locally registered enterprises (regardless of capital origin),
the core activities of which fall under the industry definition range. An enterprise is an institutional unit in
its capacity as a producer of goods and services; an enterprise may be a corporation, a quasi-
corporation, a non-profit institution, or an unincorporated enterprise. Also includes zero employee firms
(sole traders) and the self-employed. Also called number of enterprises.
Chart 20 Competitive Landscape Structure by Company Size 2018/2023
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 21 Top Companies’ Ranking 2018-2023 and % of Turnover Value 2023
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Source: Euromonitor International from official statistics, trade associations, trade press, company research
MARKET OVERVIEW
Chart 22 Market Structure by Buyer 2018-2023
Market value in 2023 – USD315 billion
Source: Euromonitor International from official statistics, trade associations, trade press, company research
Chart 23 B2B Buyers and Growth 2023, USD million
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Source: Euromonitor International from official statistics, trade associations, trade press, company research
ATTRACTIVENESS INDEX
Chart 24 Attractiveness Index in Selected Industries 2023
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Source: Euromonitor International
Note: Attractiveness index (AI) is a derivative variable, which gives a quick understanding of how the selected
industry performs in comparison with other industries in an economy. AI is based on a set of variables.
For each variable, all industries in the economy are ranked and get a corresponding rate from 1 at the
very bottom to 177 at the very top. When all ranks are available, a weighted average is calculated and
the corresponding percentile is assigned. The higher the AI, the better industry performance is.
Chart 25 Advertising Attractiveness Index Comparison Across All Industries 2023
Source: Euromonitor International
Note: The calculated index of attractiveness evaluates industry performance in particular economy for exact
year. Each measure of industry’s performance is compared across all industries in the country and is
assigned to a corresponding rank based on industry’s performance: the better the performance
is, the higher rank the industry reaches (the rank grades the scale of each parameter into 177 ranks;
industries are assigned to one of the 177 ranks according to criterion). The ranks are then weighted by
their importance and the final score is calculated as the weighted average. According to the final result
industry is being assigned to a particular percentile.
Chart 26 Attractiveness Index Methodology
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Source: Euromonitor International
ECONOMIC CONTEXT AND LABOUR MARKET
Summary 4 Economic Context and Labour Market 2023-2028
Economic Context
Per Capita Consumer Income 2023, USD 84,092
Per Capita Consumer Income Growth 2023- 4.3%
2028, % CAGR
Inflation Rate 2023/2028 4.1%/2.1%
Real GDP Growth 2023-2028 2.2%
Labour Market
Economically Active Population 2023, ‘000 167,116
Employment Rate 2023 69.4%
Wage per Hour 2023, USD 33.7
Wage per Hour in Manufacturing 2023, USD 32.4
Average Salary 2023, USD per annum 141,461
Commodities Market
Commodity Fuel (Energy) Index in 2024, 2010 100
= 100
Commodity Fuel (Energy) Index Change in -6.4%
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2024, %
Central Bank Policy Rate in 2024, % 4.6
Central Bank Policy Rate Change in 2024, % -13.7%
Source: Euromonitor International from official statistics, trade associations, trade press, company research
© Euromonitor International
