Ad Agencies Tempering Confidence With Caution

07 Sep 2017 | 11.24 am

Ad Agencies Tempering Confidence With Caution

Industry survey assesses adland’s prospects

07 Sep 2017 | 11.24 am

Ad agencies are expressing more caution regarding growth prospects, according to a new survey of the industry.

The survey, commissioned by The Institute of Advertising Practitioners in Ireland (IAPI), is based on responses from executives in 46 of Ireland’s top media and creative agencies, compiled during May and June 2017.

According to the IAPI Industry Census 2017, trend data based on 12 media agencies that participate annually in the research showed that media billings rose by 11% to €497m million in 2016 for these agencies.

Similarly trend data for a basket of 13 creative agencies showed a 3% fall in the average gross creative agency income, down to €40.8m last year. Total gross creative income was reported at €96.3m.

Agencies across creative and media reported that 27% of their income in 2016 came from international business, up from 11% in 2015.

Cautious

Those predicting that turnover will ‘increase or strongly increase’ dropped from 74% in 2016 to 58% in 2017, according to the IAPI, suggesting a more cautious outlook among agency owners. Despite this, 74% of respondents still forecasted growth for their own agency (vs 77% in 2016).

Other findings in the IAPI survey show that 45% of all agency employees are under 30, while only 6% are over the age of 51. Employment in IAPI member agencies stands at 1,830, the highest since the surveys began in 2013.

Some 42% of agencies expect staff levels to increase this year, down from 77% in 2016. Many agencies are also struggling to hold onto staff, with 278 changing jobs in the last 12 months.

Comments are closed.