U.S. Agency Revenue Rises 6.5% in 2015. Digital Accounts for 41% of Agency Business
Digital revenue for U.S. agencies surged 13.5% in 2015 to $19.3 billion, including digital work for all agency types from ad agencies and media agencies to public relations agencies and digital pure plays, according to Ad Age Datacenter’s analysis.
Digital’s share of marketing spending continues to grow. Digital captured 41.3% of U.S. agency revenue in 2015 ($19.3 billion out of $46.8 billion), up from 39.7% in 2014 and 25.8% back in 2009.
“You can’t discuss a go-to-market strategy with a client if you’re not offering best-in-class digital offerings integrated with the media as well as the creative parts of our business,” Michael Roth, chairman-CEO of Interpublic Group of Cos., told investors in March.
The surge in agencies’ digital revenue mirrors growth in digital ad spending. The internet in 2015 accounted for 28.3% of U.S. major-media ad spending, double the level of 2009, according to data from Publicis’ ZenithOptimedia. It expects the internet to capture 31.5% of spending in 2016 and 34.8% next year. ZenithOptimedia’s forecasts show the internet passing TV in 2017 to become the biggest U.S. ad medium.
Read the full article at AdAge.com.